Explain the Concept of Trial Pricing

question 75

Essay

Explain the concept of trial pricing. Why would a retailer implement this pricing strategy?

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Definitions:

Bidding Firm

A company that proposes a financial offer in an attempt to acquire another company or win a contract.

Board of Directors

A group of individuals elected by the shareholders of a corporation to oversee the management and make major decisions affecting the company's policies and strategies.

Horizontal Acquisition

A business strategy where a company acquires another in the same industry and at the same level of the supply chain.

Automaker

A company that manufactures and sells vehicles, including cars, trucks, and motorcycles.