Some Retailers Feel That Their Potential Customers Find Certain Prices

question 30

Multiple Choice

Some retailers feel that their potential customers find certain prices appealing, but between these prices the customers see prices as roughly the same-and thus price cuts within these ranges will not increase the quantity sold (i.e., the demand curve is vertical within these "same price" ranges) . These retailers would probably use ______________ if they want to maximize profit.

• A) average-cost pricing
• B) bait pricing
• C) leader pricing
• D) prestige pricing
• E) psychological pricing

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Definitions:

New Entity

A freshly established organization or structure that has its own legal identity.

Acquisition

The process of obtaining control of another corporation, either through purchase or merger.

Takeover

The transfer of control over a company from one group to another. The term generally has a hostile implication.

Merger

The combining of two or more companies into one, with the goal of achieving synergies such as increased efficiency or market share.