Pharmacies Are a New Addition to Costco

question 162

Multiple Choice

Pharmacies are a new addition to Costco.They could exert a greater influence on the marketplace for prescription drugs than their newness indicates.Costco has a stated philosophy of marking up merchandise a maximum of 14 percent.When that philosophy is applied to prescription drugs,especially generics,warehouse club prices can be dramatically lower than those of conventional drugstores,supermarkets,or discount store pharmacies.Which type of strategy is Costco using to convince consumers to use its pharmacies rather than its competitors?

• A)penetration pricing
• B)price-insensitive demand
• C)price skimming
• D)cost bundling

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Definitions:

Methodological Behaviorists

Researchers or psychologists who focus exclusively on observable behaviors and the ways these behaviors can be influenced or modified by environmental stimuli, without considering internal mental states.

Observable Behaviors

Actions or reactions of an individual in various situations, which are visible and measurable by others or through instruments.

Intervening Variables

Factors within a study that mediate the relationship between the independent and dependent variables, potentially affecting the outcome.

Negative Reinforcement

a behavior modification technique where the removal of an undesirable or unpleasant outcome after the display of a desired behavior increases the likelihood of the behavior being repeated.