Which of the Following Is a Potential Problem with a High-Low

question 256

Multiple Choice

Which of the following is a potential problem with a high-low pricing strategy?

• A) It confuses and frustrates customers.
• B) It places too much emphasis on nonprice competition.
• C) It teaches customers to wait for sales, and therefore reduces profits.
• D) It is difficult to implement.

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Definitions:

Sales Clerks

Employees who assist customers, handle transactions, and maintain merchandise organization in retail environments.

Customers Served

The number of customers who receive services or goods from a business or organization.

Marginal Product

The additional output produced as a result of adding one more unit of a specific input, holding all other inputs constant.

Average Product

The output per unit of a particular input, such as the quantity of goods produced per worker.