Which of the Following Describes a Characteristic of Leader Pricing

question 44

Multiple Choice

Which of the following describes a characteristic of leader pricing?

• A)It seeks a big profit on the leader items.
• B)It is usually used for a retailer's major product line,to give it a competitive advantage.
• C)It is different from bait pricing in that the marketing manager really expects to sell leader priced items.
• D)It assumes that some part of the demand curve is upward sloping to the right.
• E)It is banned in interstate commerce.

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Definitions:

Markup Percent

The surcharge applied to the acquisition cost of products for covering overhead and making a profit.

Selling Price

The final amount of money charged for a product or service, or the amount the consumer is willing to pay.

Markup Percent

The percentage increase over the cost price of a product to calculate the selling price.

Selling Price

The actual price at which a product or service is sold to the customer.