Which of These Statements Regarding Odd-Even Pricing Is Most Accurate

question 33

Multiple Choice

Which of these statements regarding odd-even pricing is most accurate?

• A) Odd-even pricing is designed to give the consumer a better set of pricing alternatives.
• B) Odd-even pricing can be used in conjunction with a skimming pricing strategy, but should not be used with a penetration pricing strategy.
• C) Odd-even pricing does not work if the product is health care-related.
• D) Overuse of odd-ending prices tends to mute its effect on demand.
• E) Odd-ending prices are best used with large ticket items; it loses its effectiveness with moderate- to low-ticket items.

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Definitions:

Accumulated Other Comprehensive Income

A component of shareholders' equity that includes all changes in equity from non-owner sources, excluding net income.

Projected Benefit Obligation

A measure of the present value of future pension benefits owed to employees, calculated based on their expected future salary increases.

Discount Rate

The interest rate used in calculating the present value of future cash flows; reflects the risk and the time value of money.