SCP Paradigm

Which of the following best describes the "Conduct" aspect of the SCP paradigm?

• The number of firms in the industry

• The overall profitability of the market

• How firms behave in terms of pricing, marketing, and competition

• The level of government regulation

In which type of market structure is psychological pricing and nudging most commonly used to differentiate products?

• Perfect Competition

• Monopolistic Competition

• Monopoly

• None of them

Which of the following is NOT an example of firm "conduct" in SCP?

• Using loyalty programs to retain customers

• Setting prices just below round numbers (€4.99 instead of €5)

• Using price anchoring to influence consumer choices

• The number of firms competing in the market

Why do firms in an oligopoly use psychological pricing and nudging strategies?

• Because their customers are completely rational

• To avoid direct price wars and compete in non-price ways

• To maximize short-term losses

• Because they are forced to price their products the same as competitors

Which of the following best describes the "decoy effect" in pricing?

• Setting all prices at round numbers for easier comparison

• Adding a mid-tier pricing option that makes a higher-priced option seem more reasonable

• Offering a small discount to encourage bulk purchases

• Hiding the price of a product until checkout

Which of the following is an example of scarcity nudging?

• Removing all discounts from a product

• Increasing the price of a product to make it seem more valuable

• Allowing customers to negotiate prices in-store

• Showing "Only 3 items left in stock" on an online shopping page

Which of the following is an example of a "nudge" in marketing?

• Raising the price of a product to increase demand

• Offering a discount only to customers who ask for it

• Defaulting customers into a subscription but allowing easy opt-out

• Charging customers extra for personalized service

Which of the following is an example of "price anchoring"?

• Setting all prices in round numbers

• Hiding prices until checkout

• Placing an expensive item next to a cheaper one to make the second seem like a better deal

• Using dynamic pricing to adjust prices in real time