Topic legal and ethical aspects of pricing 199 p 285

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Topic: Legal and Ethical Aspects of Pricing 199. (p. 285) A reference price might be considered deceptive if: A. the internal reference different from the ext point. B. the reference point has been inflated or is fictitious. C. the reference price is more than two times the cost of th D. the reference price has changed more than once in the E. All of these. 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 200. (p. 286) __________ lowers the price below the store's cost. A. Recessiona ry pricing B. Loss leader pricing C. Radical mark-down pricing D. Employee pricing E. Sales promotion pricing 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: 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 201. (p. 286) Bill desperately needed tires for his car, and he found an ad with an incredibly low price. When he
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got there, he found out that those had been sold out, and he was pressured into buying tires that were more expensive than he wanted. Bill found out later that Marcelo had had the same experience at the store a few weeks earlier. It's quite possible that both Bill and Marcelo had become the victim of a deceptive pricing tactic known as: 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. AACSB: Ethics Blooms: Apply Difficulty: 3 Hard Learning Objective: 13-08 List pricing strategies that have the potential to deceive customers. Topic: Legal and Ethical Aspects of Pricing 202. (p. 286) B2B quantity discounts are legal if: B2B quantity discounts are regulated by the Robinson-Patman Act. Ordinarily, all business buyers purchasing a given quantity should be charged the same price. AACSB: Ethics Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-08 List pricing strategies that have the potential to deceive customers.
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