Odd-Even Pricing Refers to

question 235

Multiple Choice

Odd-even pricing refers to

• A)setting prices one way for product lines and another way for individual brands.
• B)setting prices of luxury items at even price points and setting the price of necessities at odd price points.
• C)setting prices a few dollars or cents under an even number.
• D)adding a fixed percentage to the cost of all items in a specific product class.
• E)offering retailers "baker's dozens," thirteen items for the price of twelve to encourage larger purchase orders.

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Definitions:

Debts Incurred

Obligations or liabilities taken on during the course of financial transactions, often as a result of borrowing money or purchasing goods and services.

Owner's Equity

The residual interest in the assets of the business after deducting liabilities, representing the ownership's financial stake.

Management Efficiency

The effectiveness with which managers utilize resources and make decisions to achieve organizational goals with minimal waste or effort.

Leverage

The use of various financial instruments or borrowed capital, such as debt, to increase the potential return of an investment.