Charlie Ferragamo Is a Sales Representative for the Season-All Spice

question 201

Multiple Choice

Charlie Ferragamo is a sales representative for the Season-All Spice Company and sells spices to large food service operations and restaurants.Charlie used to be able to justify selling his products for a higher price than the competition because he believed his spices were of higher quality.However,now the demand for individual brands of spices has become very elastic because buyers perceive few differences among the brands.One of Charlie's regular customers told Charlie that another spice company offered him a significantly lower price on spices,and he asked if Charlie could match the price.Charlie said,"I have to see a written price quote from the competitor.If I lower my price without seeing the price quote,I could be accused by my other customers of engaging in ________."

• A)dumping
• B)price discrimination
• C)price fixing
• D)zone pricing
• E)price grabbing

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Definitions:

Mutual Ownership

Mutual Ownership refers to a form of ownership where customers of an enterprise, such as a mutual insurance company or building society, are also its owners.

Indirect Affiliation

A connection between entities through secondary or less direct relationships rather than a straightforward ownership or partnership link.

Accrual-Based Net Income

This is the measure of profitability that includes all earned revenues and incurred expenses within a reporting period, according to the accrual basis of accounting.