For Segmented Pricing to Be Effective, Certain Conditions Should Be

question 60

Multiple Choice

For segmented pricing to be effective, certain conditions should be met. Which of the following is NOT one of the conditions necessary for effective segmented pricing?

• A) Costs of segmenting and matching the market should exceed the extra revenue obtained from the price.
• B) Competitors should not be able to undersell the firm in the segment being charged the higher price.
• C) Members of the segment paying the lower price should not be able to resell the product to segments paying the higher price.
• D) The market must be capable of being segmented on the basis of different degrees of demand or price sensitivity.
• E) all of the above

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Definitions:

Seven-step Procedure

A structured process often followed in problem-solving or decision-making that involves steps from understanding the issue to implementing solutions.

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