What Makes a High\low Pricing Strategy Appealing to Sellers

question 22

Multiple Choice

What makes a high\low pricing strategy appealing to sellers?

• A)It attracts two distinct market segments.
• B)It allows the seller to market itself as an "everyday low price leader."
• C)It doesn't require the seller to continually offer sales or deep discounts.
• D)It allows sellers to capture the most profit from a new product or service.
• E)It reduces the need for slotting and advertising allowances.

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Definitions:

Downward-Sloping

A term used to describe a graph line that decreases in height as it moves from left to right, commonly associated with demand curves in economics, indicating that quantity demanded decreases as price increases.

Demand Curve

A graph depicting the relationship between the price of a good and the quantity of the good that consumers are willing to purchase at that price.

Monopsony

A market situation where there is only one buyer for a product or service, giving the buyer substantial control over the market price.

Collude

The act of cooperating or conspiring, especially in a secretive manner among firms, to limit competition or manipulate market prices.