Penny Bank, a discount store, is highly competitive. When entering a new market, Penny Bank often cuts prices so deeply that it sells below costs, effectively pushing smaller retail stores with less purchasing power out of the market
In this case, Penny Bank is using ________.
A) market skimming
B) psychological pricing
C) predatory pricing
D) deceptive pricing
E) cost-plus pricing
C
You might also like to view...
Which of the following items is treated as a cash equivalent?
a. Commercial paper with a 6-month maturity when purchased and 4 months until maturity at the balance sheet date. b. Investment in corporate stocks which management intends to sell within 3 months after the balance sheet date. c. Money market funds which can be obtained overnight from a bank or brokerage firm. d. Investments in corporate bonds which have 5 years until maturity when they are purchased.
U.S. GAAP and IFRS require firms to retrospectively apply any changes in accounting principle by recalculating the income for prior periods under the new accounting principle, if it at all feasible
Indicate whether the statement is true or false
Tom and Sally Jones are preparing to purchase a new car. Tom currently has a Toyota Camry and Sally has a Honda Accord. They now have two children under age 5, so they plan to trade in Sally's car to purchase a minivan. Sally and Tom decide on a Honda Odyssey because Sally is familiar with Hondas and thinks they are very reliable. In this purchase situation, Tom and Sally's family life cycle stage is a ________ segmenting dimension, and the benefit Sally seeks (reliability) is a ________ segmenting dimension.
A. demographic; behavioral B. geographic; behavioral C. demographic; geographic D. behavioral; demographic E. geographic; demographic
Which metric is based on the idea that word of mouth, rather than any other metric, is the best predictor of a firm's growth and therefore, financial performance?
What will be an ideal response?