What Type of Pricing Strategy Is Used in a Situation

question 3

Multiple Choice

What type of pricing strategy is used in a situation where the seller has an ethical responsibility not to overcharge the client and the fees do not relate directly to the time and/or effort spent in specific cases?

• A) Price lining
• B) Prestige pricing
• C) Professional pricing
• D) Customary pricing
• E) Price skimming

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Definitions:

Stockout Cost

The financial impact associated with running out of stock, including lost sales, backorder processing, and customer dissatisfaction.

Inventory Holding Cost

The expenses associated with storing unsold goods, including warehousing, insurance, and spoilage costs.

Yield Management Principles

Strategies used in revenue management to adjust prices and inventory in response to demand, in order to maximize revenue or yield.

Sales Price

The amount of money charged for a product or service, or the value that customers are willing to pay.