A Business That Uses Price Lining Is ________

question 73

Multiple Choice

A business that uses price lining is ________.

• A)attempting to attain a large market share before any competitors can enter the marketplace
• B)trying to avoid the use of psychological pricing that may be adversely received by customers
• C)trying to recoup its research and development costs for a new product
• D)using price points to determine its pricing strategy
• E)potentially in legal trouble unless it can justify the practice

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Definitions:

Consumption Subculture

A distinctive subgroup of society that self-selects on the basis of a shared commitment to a particular product class, brand, or consumption activity.

Shared Commitment

A mutual agreement or pledge among members of a group to pursue a common goal or adhere to a particular set of standards or principles.

Membership Reference Group

The group to which a consumer actually belongs.

Cognitive

Relating to mental activities such as thinking, understanding, learning, and remembering.