Many Credit Cards Offer So-Called "Teaser" Rates-Low Introductory Rates That

question 45

Multiple Choice

Many credit cards offer so-called "teaser" rates-low introductory rates that rise after a few months.What type of pricing strategy is the use of introductory rates an example of?

• A) penetration pricing
• B) skimming pricing
• C) everyday low pricing
• D) competitive pricing

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Definitions:

Net Inflow

The total amount of something (such as capital or goods) entering a location minus the amount leaving it.

Services

Intangible activities or benefits that an organization provides to consumers in exchange for money or some other value.

Dollar Rate

The exchange rate of a currency against the US dollar.

British Pounds

The currency of the United Kingdom, officially known as the pound sterling, used across England, Scotland, Wales, and Northern Ireland.