Which of the Following Statements Regarding Odd-Even Pricing Is Most

question 13

Multiple Choice

Which of the following statements regarding odd-even pricing is most accurate?

• A) Odd-even pricing is designed to give the consumer a better set of pricing alternatives.
• B) Odd-even pricing can be used in conjunction with a skimming pricing strategy, but should not be used with a penetration pricing strategy.
• C) Odd-even pricing does not work if the product is health care-related.
• D) Overuse of odd-even prices tends to mute its effect on demand.
• E) Odd-even prices are best used with large ticket items; it loses its effectiveness with moderate- to low-ticket items.

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Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Paid-in Capital

The amount of money that shareholders have invested in a company in exchange for ownership, excluding earnings or retained profits.

Retained Earnings Appropriation

Portions of retained earnings that are set aside for specific purposes, such as future expansion or debt repayment, indicating they are not available for dividend distribution.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.