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Passage 9Questions 19-33 ● Read the findings below on psychology of consumption. ● Choose the best word to fill each gap from A, B, C or D on the opposite page. ● For each question 19-33, mark one letter (A, B, C or D) on your Answer Sheet. ● There is an example at the beginning, (0).Pricing and the Psychology of Consumption Ask any executive how pricing policies influence the demand for a product or service, and you’ll get a confident, well-reasoned reply. Ask that same executive how pricing policies affect consumption—the (0)______. to which customers use products or services that they’ve (19)______ for—and you’ll get a muted response at best. It is found that managers rarely, if ever, think about consumption when they (20)______ prices and that be an (21)______ oversight. For many executives, the idea that they should (22)______ consumers’ attention to the price that was paid for a product or service is counterintuitive. Companies have long (23)______ to mask the costs of their goods and services in order to boost sales. And rightly (24)______ —if a company fails to (25)______ the initial sale it won’t have to worry about consumption. To promote sales, health club managers encourage members to get the payment out of the (26)______ early; HMOs encourage automatic payroll deductions; and cruise lines bundle small, specific costs into a single, all-inclusive (27)______ However, executives may be discouraging consumption when they (28)______ those pricing practices. People are more (29)______ to consume a product when they are (30)______ of its cost—when they feel ‘out of pocket’. But (31)______pricing practices such as advance sales, season tickets, and price bundling all serve to mask how much a buyer has (32)______ on a given product, decreasing the likelihood that the buyer will actually use it. And a customer who doesn’t use a product is unlikely to buy that product again. Executives who (33)______ those pricing tactics without considering their impact on consumption may be trading off long-term customer retention for short-term increases in sales. 19. A. funded B. paid C. bought D. expended 20. A. set B. decide C. resolve D. settle 21. A. costly B. expensive C. dear D. luxurious 22. A. pull B. drag C. draw D. get 23. A. found B. searched C. sought D. gone 24. A. as B. thus C. for D. so 25. A. produce B. construct C. build D. make 26. A. road B. way C. line D. path 27. A. money B. cash C. fee D. pay 28. A. put B. apply C. carry D. do 29. A. probable B. likely C. possible D. sure 30. A. aware B. clear C. familiar D. conscious 31. A. common B. same C. ordinary D. similar 32. A. afforded B. cost C. used D. spent 33. A. engage B. appoint C. hire D. employ
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