(Last Word) Suppose That a Firm Has "Pricing Power" and Can

question 137

Multiple Choice

(Last Word) Suppose that a firm has "pricing power" and can segregate its market into two distinct groups based on differences in elasticities of demand.The firm might charge

• A)a lower price to the group that has the less elastic demand.
• B)a higher price to the group that has the less elastic demand.
• C)the same price to both groups but include a "free" related product for the group that has an inelastic demand.
• D)the same price to both groups but make it difficult for the group with the more elastic demand to gain access to the product.

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Definitions:

Mixed Branding

a strategy where a company markets products under several different brands, often catering to different market segments.

Own Market

A term referring to the market where a company sells its products or services, often in contrast to competitor markets.

Reseller

An entity or person who buys products or services to sell them, rather than to use or consume them personally.

Multibranding

The marketing strategy that involves a company using two or more brands to market similar products or services to different segments.