When a Company Attempts to Influence a Consumer's Perception of Price

question 48

Multiple Choice

When a company attempts to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock," it is using a ____ pricing strategy.

• A) competition-based
• B) professional
• C) promotional
• D) comparison
• E) psychological

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Definitions:

Traditional IRA

A savings plan in which the income generated by the account is tax-deferred until it is withdrawn from that account.

Tax Liability

The total amount of tax that an individual or organization owes to the tax authorities.

401k Contributions

401k contributions are pre-tax or post-tax money individuals contribute to their 401k retirement savings plan, often matched by their employer to some extent.

Biweekly Paycheck

A payment method where employees receive wages every two weeks, resulting in 26 paychecks per year.