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.

---

Definitions:

Special Order

A customer request for a product or service that is not normally offered by the business, often requiring unique production or procurement efforts.

Selling Price

The amount of money charged for a product or service, or the sum of the cost plus profit.

Variable Costs

Expenses that change in proportion to the production output or sales amount.

Target Costing

A pricing strategy in which the selling price of a product is set first, and then the target cost is determined by subtracting a desired profit margin from the selling price.