A Manager at JCPenney Discovers That Burlington Coat Factory Has

question 179

Multiple Choice

A manager at JCPenney discovers that Burlington Coat Factory has reduced the price of its children's Levi's from $31.99 to $24.99, according to an advertisement in the Sunday newspaper. She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: $24.99." This is an example of what pricing strategy?

• A) Secondary-market pricing
• B) Periodic discounting
• C) Reference pricing
• D) Random discounting
• E) Comparison discounting

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Definitions:

Federal Taxes

Mandatory financial charges collected by the federal government to fund public services and projects.

State Taxes

Taxes imposed by state governments on income, sales, property, and other activities within their jurisdiction.

Federal Government

The national government of a federated state, which shares sovereignty with the individual state or provincial governments.

Property Tax

A tax on the value of property, such as the value of a home.