In an Effort to Differentiate Its Offerings from Its Competitors

question 81

Multiple Choice

In an effort to differentiate its offerings from its competitors, Pegasus Computers decided to add an extra USB port in all its laptops besides providing a free pair of Delphi power bass headphones with every Pegasus laptop. Although the additional features increased the price of the laptops by $500, Pegasus was confident that the strategy would help boost demand for its laptops substantially. This is an example of ________.

• A) good-value pricing
• B) markup pricing
• C) break-even pricing
• D) value-added pricing
• E) cost-based pricing

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Definitions:

Rescinded

The act of revoking, canceling, or repealing a contract, decision, or agreement, making it as if it never existed.

Scienter

Deliberately or knowingly.

Duress

Any unlawful act or threat exercised on a person whereby the person is forced to enter into an agreement or to perform some other act against his or her will.

Physical Harm

Damage or injury to a person's body.