_____________ Sells Merchandise or Services That Are Stored in a Machine

question 48

Multiple Choice

_____________ sells merchandise or services that are stored in a machine then dispensed to the consumer when the payment has been made.

• A) Vending machine retailing
• B) Supermarket
• C) Electronic retailing
• D) Direct selling
• E) Television home shopping

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Definitions:

Arbitrage

A means to defeat a price discrimination scheme; it occurs when low-value individuals are able to resell their lower-priced goods to the higher-value group.

Low-value Group

A segment of the market or population perceived to have less purchasing power or economic importance.

Direct Price Discrimination

A pricing strategy where a seller charges different prices to different customers for the same product or service, based explicitly on the customer's willingness to pay.

Indirect Price Discrimination

A pricing strategy where different prices are charged for the same product or service in different markets or segments, not directly by customer characteristics.