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:

Decision Structure

The framework or methods used by organizations or individuals to make and implement decisions.

Employee Involvement

A workplace strategy that allows employees to participate in decision-making processes and contribute to problem-solving relevant to their work.

Nonprogrammed Decision

Decision-making that occurs in situations that are unique, poorly defined and largely unstructured, requiring custom solutions.

Manager's Involvement

Refers to the degree to which a manager is engaged in the daily operations and decision-making processes of their team or department.