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:

Times Interest Earned

A ratio that measures a company's ability to meet its interest payments on outstanding debt.