Dynamic Pricing

question 37

Multiple Choice

Dynamic pricing:

• A) refers to pricing that shifts over time based on conditions associated with product supply and demand.
• B) refers to pricing that is always a notch higher than competition.
• C) refers to pricing strategies that focuses on consistency even if environmental conditions fluctuate wildly.
• D) is also known as the bargaining power of customers.
• E) refers to pricing that is always a notch below competition.

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Definitions:

Classical Conditioning

A learning strategy that consists of continuously pairing two stimuli; the reaction that is at the beginning evoked by the second stimulus, is eventually evoked by the first stimulus singularly.

Negative Reinforcement

A process in behavior modification where the removal of an undesirable or unpleasant stimulus strengthens or increases the likelihood of a behavior.

Spontaneous Recovery

The reappearance of a conditioned response after a period of lessened response.

Operant Conditioning

A technique for adjusting behavior by dispensing rewards for good actions or penalties for bad ones.