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:

Volume-based

A pricing or costing method that changes based on the amount of goods or services produced or sold.

Non-volume-based

Refers to costing methods that allocate costs based on factors other than the volume of production, such as time or complexity.

Organisational Structure

The system of rules, roles, and responsibilities within an organization that determines how it operates and how its employees work together to achieve business objectives.

Committed Cost

Expenses that a company has formally pledged or is obligated to incur, often fixed costs related to contracts or legal commitments.