Regarding Pricing

question 3

Multiple Choice

Regarding pricing:

• A) the use of prestige and psychological pricing shows that most retailers do not consider demand when setting prices.
• B) bait pricing tries to attract customers on the high end of a demand curve.
• C) the FTC considers bait pricing a deceptive act and has banned its use in interstate commerce.
• D) leader-priced items are priced very low to get customers into the store-not to sell these items.
• E) All of these alternatives are correct.

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Definitions:

Heuristic

is a simple, efficient rule or method used to make decisions or solve problems, based on practical judgement rather than comprehensive logical analysis.

Critical Thinking

The disciplined process of actively and skilfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach an answer or conclusion.

Deliberative Thinking

The process of carefully considering and rationalizing thoughts and options before making a decision or forming a judgment.

Active Thinking

The deliberate, conscious mental process of generating ideas, solving problems, and making decisions.