Dag Runs a Hardware Store

question 70

Multiple Choice

Dag runs a hardware store. He learned that customers process the price of $9.99 as significantly lower than the price of $10.00 because of the reduced digit count in the price point. Accordingly, he follows this rule to set up the prices for all products. Dag uses a ________ strategy.

• A) psychological pricing
• B) one-price strategy
• C) variable pricing
• D) everyday low pricing (EDLP)
• E) high/low pricing

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Definitions:

Web-based Surveys

Research tools delivered through the internet to collect data from respondents over a wide geographic area in a cost-effective manner.

Panel Study

A method of research in which a given sample of respondents is surveyed at one point in time and then resurveyed at a later point (or several later points). Also known as a longitudinal survey.

Cross-sectional Survey

A research method involving the collection of data from a population, or a representative subset, at one specific point in time.

Causal Connections

The relationship between causes and effects, where one event is understood to be the result of another.