________ Is a Pricing Tactic a Firm Uses for Two

question 56

Multiple Choice

________ is a pricing tactic a firm uses for two products that work only when used together. The firm sells one item at a very low price and then makes its profit on the second high-margin item.

• A) Two-part pricing
• B) Price bundling
• C) Captive pricing
• D) Decoy pricing
• E) Keystoning

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Definitions:

Channel Conflict

A situation where channels of distribution for the same product or service are in competition, or when sales channels cannibalize each other's sales or impede each other's revenue.

Distribution Coverage

The extent to which a product or service is made available and accessible to customers within a particular market area.

Vendor-Managed Inventory

A supply chain management practice where the supplier assumes responsibility for maintaining an inventory at the buyer's location, often optimizing stock levels and reducing costs.

Channel Practices

The strategies and methods businesses use to distribute their products or services through various marketing channels to the end customer.