Diane Owns a Bakery Where She Sells Cupcakes

question 96

Multiple Choice

Diane owns a bakery where she sells cupcakes.Two blocks down there is another bakery,CC's Bakery,that sells cupcakes for $1 less than Diane.Diane decides to lower her price and match CC's Bakery prices.What type of pricing strategy is Diane implementing?

• A) internal pricing
• B) profit-oriented pricing
• C) competitor-oriented pricing
• D) customer-oriented pricing
• E) sales-oriented pricing

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Definitions:

Low Validity

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Item Characteristic Curve

A graphical representation that shows the probability of a respondent answering a test item correctly at different levels of ability.

Item Response Theory

A theory and related statistical models that estimate the probability of an individual responding to a specific item on a test, based on the item characteristics and the individual's latent trait level.

Rehabilitation Act

A U.S. federal law that prohibits discrimination on the basis of disability in programs conducted by federal agencies.