A Problem Associated with ____ Is That Consumers Can Predict

question 154

Multiple Choice

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

• A) random discounting
• B) penetration pricing
• C) reference pricing
• D) everyday low pricing
• E) periodic discounting

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Definitions:

Credit Sales

Transactions where the buyer is allowed to pay for goods or services at a later date, rather than at the time of purchase.

Interest Rate

A cost, depicted as a percent of the original amount, that a lender demands from a borrower for the right to use resources.

Stated Rate

The interest rate declared on a financial instrument, such as a bond or a loan, which is fixed and does not change over the life of the instrument.

Term

In finance, it refers to the period of time until a loan matures; in a broader sense, it can describe any specific duration or the definition of a concept or agreement.