Aacsb analytic blooms understand difficulty 2 medium

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AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-07 Explain the difference between a market penetration pricing strategy and a price skimming pricing strategy. Topic: Pricing Strategies 155. (p. 285) Price advertisements should never: A. include "puffery." B. deceive customers to the point of doing harm. C. include the price. D. use advertising allowances to increase sales promotion E. use price skimming after using price penetration. Ethical marketers should not engage in deceptive pricing tactics such as bait and switch pricing, or the use of deceptive reference prices. AACSB: Ethics Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-08 List pricing strategies that have the potential to deceive customers. Topic: Legal and Ethical Aspects of Pricing 156. (p. 285) For marketers to advertise a price as their __________, the Better Business Bureau recommends that at least 50 percent of the sales of a product occur at that price. A. fixed price B. zone price C. regular price D. leader price E. cost-based price Advertised "regular prices" can be deceptive if very few product sales ever occurred at that price. This guideline prevents that kind of deception.
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AACSB: Ethics Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-08 List pricing strategies that have the potential to deceive customers. Topic: Legal and Ethical Aspects of Pricing 157. (p. 285) Marketers advertising an artificially high "regular price" are unethically attempting to influence consumers' __________ perceptions. A. fixed price B. reference price C. seasonal price D. leader price E. cost-based price Advertised "regular prices" can be deceptive if very few product sales ever occurred at that price. The firm is trying to establishing a false reference price in order to make its current price seem like a bargain. AACSB: Ethics Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-08 List pricing strategies that have the potential to deceive customers. Topic: Legal and Ethical Aspects of Pricing 158. (p. 286) __________ pricing tactics lower the price of a product below cost. A. Fix ed B. Zone C. Regular D. Loss leader E. Cost-based While leader pricing--setting prices of a few items lower than usual to bring customers into a store--is a common practice, if the prices go below cost, it becomes loss leader pricing, an unethical tactic. AACSB: Ethics Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-08 List pricing strategies that have the potential to deceive customers. Topic: Legal and Ethical Aspects of Pricing 159. (p. 286) In a __________ pricing tactic, sellers advertise low prices and then aggressively pressure
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customers to purchase higher-priced versions of the product advertised with the low price. A. fixed offer B. reference C. seasonal D. bait and switch E. cost-based Bait and switch tactics lure customers into the store with promises of low prices--often for products that are not even available in the store.
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