Product X Is Composed of Many Different Parts, Each of Which

question 61

Multiple Choice

Product X is composed of many different parts, each of which consumers value differently. All the different parts of the product, however, are not sold together. They are sold as a number of separate parts, each with an individual price. This practice is referred to as _____.

• A) de-bundling
• B) discounting
• C) price leadership
• D) cost-plus pricing

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Definitions:

Synergies

The collaboration or concurrence of two or more entities, materials, or factors that leads to a cumulative result surpassing the total of their distinct effects.

Functional

Pertaining to the way in which something operates or performs its duty, often implying effectiveness and efficiency.

Retail Warehouse Store

A type of retail store that combines aspects of warehousing and retail selling, often offering products in bulk or at discounted prices.

Adjacent Gas Station

A term potentially referring to gas stations located near each other, often in a competitive proximity to attract more customers through convenience.