Which of the Following Is an Adverse Effect of Using

question 58

Multiple Choice

Which of the following is an adverse effect of using promotional pricing?

• A) It makes shopping stressful if used by multiple stores simultaneously.
• B) It erodes the value of competing brands in the eyes of customers.
• C) It gives pricing secrets away to competitors.
• D) It creates "deal-immune" customers if used often.
• E) It delays the company's focus on short-term strategies.

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Definitions:

Premium

An amount paid for an insurance policy, or the price above the normal or nominal cost in financial transactions.

Discount

A reduction from the usual cost of something, often expressed as a percentage off the original price.

Convertible Bond

A financial instrument that allows the bondholder to convert the bond into a predetermined number of shares of common stock of the issuing company.

Market Value

The dollar amount required to replace the inventory as of the inventory date.