A Retailer That Uses the List Price for Products but Runs

question 147

Multiple Choice

A retailer that uses the list price for products but runs frequent promotions that heavily discount some products is using which type of pricing strategy?

• A) price skimming
• B) trial pricing
• C) penetration pricing
• D) peak load pricing
• E) high/low pricing

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Definitions:

Coupon Rate

The interest payment made annually on a bond, shown in percentage terms of its face value.

Time To Maturity

The duration remaining until the final payment date of a loan, bond, or other financial instrument, at which point the principal (and usually the final interest payment) is due to be paid.

Interest Rate Risk

The risk that the value of an investment will decrease due to a change in interest rates.

High Coupon Bond

A bond that offers a relatively high interest rate (or coupon rate) compared to the current prevailing rates of other similar bonds.