Identify a true statement about loss-leader pricing.

A. It captures as much of the market as possible through permanent rock-bottom prices.
B. Retailers place a handful of items that are priced temporarily below cost at the back of their store.
C. Retailers use a high pricing strategy to send consumers a message about the exclusivity of a product.
D. It is applicable on all products sold in a department store.


Answer: B

Business

You might also like to view...

Our authors recommend some scales to measure constructs often measured in marketing research studies. For example, they recommend a semantic differential or a Stapel scale to measure the construct's brand image

They recommend a one-way labeled scale to measure the construct's importance. Indicate whether the statement is true or false

Business

Pretests are best done by personal interviews, even if the actual survey is to be conducted by mail, telephone, or electronic means

Indicate whether the statement is true or false

Business

The FUTA tax rate most often actually paid by employers is 0.8 percent

Indicate whether the statement is true or false

Business

With regard to GASB No. 34, which of the following statements is true?

a. Government-wide financial statements should be prepared on a modified accrual basis. b. Governmental activities should be combined with the financial statements of business-type activities. c. Neither government-wide statements nor fund statements are considered superior or subordinate to the other. d. Airports would be considered a government-type activity.

Business