CDz, Your Local Music and Video Store, Always Keeps a Few

question 48

Multiple Choice

CDz, your local music and video store, always keeps a few items on sale at prices that are actually below cost in order to attract a high volume of customers who will also buy higher-priced merchandise. What pricing tactic is CDz using?

• A) loss leader pricing
• B) exception pricing
• C) bait and switch pricing
• D) penetration pricing

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Definitions:

Cognitive Therapy

A multistep approach developed for treating individuals with depression. First, individuals identify dysfunctional thoughts and maladaptive assumptions that may be causing unpleasant emotions. Second, several techniques are used to counteract the debilitating thoughts or dysfunctional assumptions contributing to the emotional distress. Third, individuals complete assignments that require practicing appropriate thoughts and behaviors.

Rational-emotive Therapy

A form of cognitive-behavioral therapy founded by Albert Ellis that aims to identify and change irrational beliefs and attitudes.

Stress Inoculation Training

A psychological therapy that helps individuals prepare for and manage stressful situations through practicing coping skills.

Thought Stopping

A cognitive-behavior modification intervention designed to help students control unproductive or self-defeating thoughts and images by suppressing or eliminating them through the use of a multistage process.