When Consumers Decide to Purchase a Music CD from Amazon

question 12

Multiple Choice

When consumers decide to purchase a music CD from Amazon.com, the company's Web site often suggests that consumers purchase an additional CD by the same artist for a combined price that is lower than the two CDs would sell for separately. Amazon.com is using:

• A) Product-bundle pricing.
• B) Complementary product pricing.
• C) Full-line pricing.
• D) Bid pricing.
• E) Demand-backward pricing.

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Definitions:

Functional Fixedness

A mental shortcut that restricts an individual to employing an item solely in its conventional manner, obstructing innovative thinking and the ability to solve problems.

Availability Heuristic

A cognitive bias where people judge the likelihood of events based on how easily examples come to mind.

Elimination-by-aspects Strategy

A decision-making process where choices are sequentially eliminated based on whether they fail to meet certain criteria.

Alternate Outcomes Analysis

A decision-making process that involves considering different possible outcomes to evaluate the effectiveness of decisions.