The Practice of Charging a Very Low Price for a Product

question 208

Multiple Choice

The practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as

• A) price fixing.
• B) predatory pricing.
• C) price discrimination.
• D) deceptive pricing.
• E) geographical pricing.

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Definitions:

Distributive Bargaining

A negotiation strategy focused on dividing a fixed amount of resources, often resulting in a win-lose situation.

Integrative Negotiation

Integrative negotiation is a cooperative approach where parties aim to find solutions that satisfy the interests of all involved, focusing on mutual gain rather than competition.

Trust and Openness

Pertains to the level of reliability and transparency present in relationships and interactions.

Dilemma of Trust

The dilemma of trust involves the challenge of deciding how much trust to place in other parties during a negotiation, balancing the risks of being too trusting or too suspicious.