The Manager at Target Puts a Sign Up Next to a Samsung

question 56

Multiple Choice

The manager at Target puts a sign up next to a Samsung audio system that reads, "Only $299.99! $60 less than at Best Buy." This is an example of what type of pricing strategy?

• A) Random discounting
• B) Periodic discounting
• C) Comparison discounting
• D) Penetration pricing
• E) Everyday low prices

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Definitions:

Purchases Discount

Purchases Discount refers to a reduction in the price paid for goods or services if payment is made within a specified period.

Yearly Savings Rate

The percentage of one's income that is saved annually, often used in personal financial planning.

FOB Shipping Point

A term used in shipping contracts to indicate that a buyer must pay for the shipping costs and is responsible for the goods once they leave the seller's premises.

FOB Destination

FOB Destination is a shipping term indicating that the seller retains ownership and liability of goods until they are delivered to the buyer's specified location, at which point the buyer assumes responsibility.