Consumers Buy Water and Soda from Vending Machines

question 245

Multiple Choice

Consumers buy water and soda from vending machines. Usually the price of each of these products is about $1.50. If a marketer charges a significantly higher price for such products dispensed by vending machines, such as $2.50 per item, sales are likely to decline. Thus, marketers tend to be very consistent in the prices they charge for vending machine products. This is an example of marketers employing a ________ strategy.

• A) below-market pricing
• B) skimming pricing
• C) penetration pricing
• D) loss-leader pricing
• E) customary pricing

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Definitions:

Stock Options

Financial instruments granted to employees, giving them the right to buy the company's stock at a fixed price in the future.

Sales Commissions

Financial rewards given to sales personnel based on the volume or value of sales they have achieved, serving as an incentive.

Piece-Rate Pay

A compensation system where employees are paid based on the quantity of units they produce or complete.

Decision-Making Responsibility

The obligation to make choices that affect an organization's performance and to bear the consequences of those choices.