Pricing Objectives Should Be Explicitly Stated Because

question 250

Multiple Choice

Pricing objectives should be explicitly stated because:

• A) they have a direct effect on pricing policies as well as price setting methods.
• B) they are signals given to competing firms.
• C) they form the basis of shareholder expectations about a firm's prospects.
• D) it is required by law.
• E) they are signals given to consumers.

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Definitions:

Representativeness Heuristic

A mental shortcut that involves making judgments about the probability of an event under uncertainty, based on how much it resembles the typical case.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person’s mind when evaluating a topic, concept, method, or decision.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses.

Representativeness Heuristic

A cognitive shortcut used in decision making, where an individual relies on the similarity between the item in question and a category prototype.