An MP3 Player Is Sold at a Price Close to the Break

question 93

Multiple Choice

An MP3 player is sold at a price close to the break even point,but the accessories for the product are priced at a premium,offer impressive contribution margins.This is an example of:

• A)byproduct pricing.
• B)bundling.
• C)captive-product pricing.
• D)multiple-unit pricing.

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Definitions:

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act in certain ways based on their expectations of outcomes and the attractiveness of those outcomes.

Interval Schedules

Are partial reinforcement schedules in which behavior is reinforced as a function of the passage of time—for example, rewarding someone every 10 minutes as long as they were exhibiting desired behavior.

Ratio Schedules

In the context of behavioral psychology, it's a reinforcement strategy where a response is reinforced after a specific number of responses.

Reinforcement Theory

A behavioral theory which posits that behavior can be shaped or modified through rewards or punishments, encouraging or discouraging certain actions.