Which of the Following Pricing Approaches Should Be Used by a Profit-Oriented

question 136

Multiple Choice

Which of the following pricing approaches should be used by a profit-oriented retailer if its demand curve is down-sloping to the right for a while but then actually bends back to the left at lower prices?

• A)psychological pricing
• B)prestige pricing
• C)average-cost pricing
• D)bait pricing
• E)penetration pricing

---

Definitions:

Reactance Theory

Suggests that individuals may react against threats to their freedom of choice by doing the opposite of what they are being pushed towards, to reassert their autonomy.

Plan A

The primary strategy or course of action intended to achieve a specific goal before any alternatives are considered.

Likely

Having a high probability of occurring or being true.

Task Conflict

A form of conflict that arises over disagreements related to the work being done, goals to achieve, or methods to be used, which can sometimes lead to improved outcomes through increased group discussion and critical analysis.