By using a company deliberately sets a low price with the intention of driving

By using a company deliberately sets a low price with

This preview shows page 34 - 37 out of 38 pages.

139) By using ________, a company deliberately sets a low price with the intention of driving itscompetition out of business.A) price-fixingB) price liningC) surge pricingD) predatory pricingE) loss leader pricingAnswer: DDifficulty: EasyLO: 10.5: Describe the psychological, legal, and ethical aspects of pricingAACSB: Ethical understanding and reasoning140) As a result of the ________, Rick decided the candy priced at $2.50 per pound could not be nearly as good as the candy priced at $9.50 per pound.141) A local restaurant sells lunch entrees for $7.95, $9.95, and $11.95. From this information, you can infer the restaurant uses which of the following?
Background image
142) A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaurant nearby sells entrees for $20, $30, and $45. Both of these restaurants are using ________.143) After looking at the ads in her Sunday paper, Ruby decided to visit a local nursery and buy potting soil for her plants at $1.99 a bag. The regular price is $4.99 a bag. While Ruby was there she also purchased three bushes, six flowering plants, and a bird bath. You can infer from this information that the nursery used the bags of potting soil as a ________.A) loss leaderB) freemiumC) bait-and-switchD) price lineE) reference priceAnswer: ADifficulty: ModerateLO: 10.5: Describe the psychological, legal, and ethical aspects of pricingAACSB: Analytical thinking
Background image
144) When Circuit Town Electronics sets its televisions at three price levels of $699, $899, and $1,099, it is most likely using ________.
Background image
Image of page 37

You've reached the end of your free preview.

Want to read all 38 pages?

  • Summer '17
  • Prof Farshad Salman

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture