Steve Is Trying to Determine Whether It Will Rain This

question 92

Multiple Choice

Steve is trying to determine whether it will rain this Saturday.He quickly remembers that it has rained the past three Saturdays.If he uses this information to make his decision,he will be using

• A) framing.
• B) insight.
• C) the representativeness heuristic.
• D) the availability heuristic.

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Definitions:

Skimming Pricing

A pricing strategy where a product is initially sold at a high price to target customers who are less price-sensitive, before gradually lowering the price.

Prestige Pricing

A pricing strategy where prices are set higher than average to project exclusivity, quality, or luxury, appealing to consumers' status and prestige.

Standard Markup Pricing

Adding a fixed percentage to the cost of all items in a specific product class.

Cost-Oriented

A pricing strategy where the price of a product or service is determined by adding a profit margin to its production cost.