Which of the Following Represents a Pricing Strategy That Establishes

question 92

Multiple Choice

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors?

• A)Skimming strategy.
• B)Price lining strategy.
• C)Penetration strategy.
• D)Odd pricing strategy.

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Definitions:

Rack Jobber

A company that provides and manages inventory for retail shelves, often specializing in music, magazines, books, or electronics, and retaining ownership until items are sold.

Consignment

An arrangement where goods are left with a third party to sell, but the ownership remains with the supplier until the goods are sold.

General Merchandise

A category of products that includes a wide variety of items, typically found in a department store or retail outlet, not limited to any specific category.

Channel Functions

Activities involved in moving goods from producers to consumers, including distribution, transportation, and retailing.