Refer to the Scenario Below to Answer the Following Question(s)

question 141

Multiple Choice

Refer to the scenario below to answer the following question(s) .
Champion, Inc. is a manufacturer of lunch boxes, school bags, and school stationery. Charles Payton, the CEO of Champion, hopes to sell the products at a low price to penetrate the market quickly.
-Noticing that 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:

Randomized Block

A design for experiments where subjects are divided into blocks and then randomly assigned to treatments.

Spearman's Rank-Correlation

A nonparametric measure of rank correlation that assesses how well the relationship between two variables can be described using a monotonic function.

Monotonically Increasing

Describes a function or sequence that never decreases as its argument or index increases, allowing for constant values.

Relationship Between Variables

The way in which two or more variables are associated or interact with each other.