Because Market and Operating Conditions Are Different in Each Target

question 94

Multiple Choice

Because market and operating conditions are different in each target market

• A) all consumers will react similarly to the firm's pricing strategy.
• B) the choice of a pricing strategy is specific to the target market.
• C) prices need to be held constant because everything else is changing.
• D) only horizontal price fixing should be used.
• E) external reference prices will always be the best strategy.

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Definitions:

Physical Characteristics

The observable attributes or features of an object, person, or place.

Price Leadership

A situation in which the leading company in a market sets the price of goods or services, and other companies in the market follow suit.

Specific Attributes

The individual characteristics or features that distinguish a product or service, contributing to its performance and appeal.

Principle of Similarity

A principle stating that objects that are similar in appearance are more likely to be perceived as belonging together within a group.