Noticing That the Themed Envelopes Aren't Selling Well, Charles Payton

question 138

Multiple Choice

Noticing that the themed envelopes aren't selling well, Charles Payton decides to offer customers a special "letter writing" kit, He prices the kit-which comprises letter paper, matching envelopes, and pens-at $5, even though the combined prices of the individual items is $8. Which of the following pricing strategies is he using?

• A) optional product pricing
• B) product bundle pricing
• C) by-product pricing
• D) dynamic pricing
• E) captive product pricing

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Definitions:

Psychiatrists

Medical doctors specializing in the diagnosis, treatment, and prevention of mental illnesses and disorders.

Mental Disorders

Health conditions characterized by alterations in thinking, mood, or behavior associated with distress or impaired functioning.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a standardized classification of mental health conditions published by the American Psychiatric Association.

Mental Disorders

A wide range of conditions that affect mood, thinking, and behavior, often causing distress and difficulty in functioning.