Retailers Have Three Pricing Techniques Available to Them

question 105

Essay

Retailers have three pricing techniques available to them.Describe each technique,explain why a retailer would use it,and offer advantages or disadvantages that exist for each technique.

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Definitions:

Geometric Return

The average rate of return on an investment that accounts for compound interest over multiple periods.

Investment

Allocation of resources, typically money, with the expectation of generating an income or profit.

Volatile

Characteristic of a substance or entity that is likely to change rapidly and unpredictably, especially for the worse.

Historical Returns

The past financial performance of an investment, used to evaluate and compare the potential for future returns over time, drawing from historical data.