Charging $0

question 6

Multiple Choice

Charging $0.99 instead of $1.00, or using 3s in the price instead of 7s, is an attempt to engage in:

• A) Competition-based pricing
• B) Psychological pricing
• C) Yield management
• D) Price discrimination

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Definitions:

Low-Value Product

Products that have a low price point or perceived economic value to the consumer, often resulting in slim profit margins.

High Demand

A situation where the desire and need for a product or service greatly exceeds the available supply within a market.

Transportation

The movement of goods and people from one location to another using various modes such as road, rail, air, and sea.

Supply Chain

The interconnected network of businesses and processes involved in the production, handling, and distribution of goods or services, from raw materials to end-user.