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In the absence of other cues, price is an important indicator of a product’s quality to prospective purchasers.

The price elasticity of demand (or elasticity of demand) is the percentage change in the quantity of a good or service demanded divided by the percentage change in its price.

Don intends to use promotional pricing as an ongoing part of the marketing strategy for his automotive supply store. Because you are his friend – and have years of experience in retail marketing – you feel obligated to tell Don that he should rethink this plan. What point(s) do you make?

Which of the following pricing strategies tries to reduce the emphasis on price as a competitive weapon?

Which of the following is NOT one of the three foundations of pricing? 

“Buy three shock absorbers and get the fourth free,” as advertised by an auto repair shop, is an example of _____ pricing.

A skimming pricing strategy is more commonly used by firms to:

A company will never sell a product below the production costs.

Deena operates a coffee shop located near the university campus.  Her major competitor is Kaprice’s Coffee on the corner across the street from Deena’s Café.  Recently, Deena decided to raise the price of all the products she sells.  Since they are close competitors with Deena’s Café, Kaprice’s can most likely experience:

It is interesting that gasoline stations near one another normally have the very same price – down to the tenth of a cent a gallon!  From a strategic pricing perspective, we can conclude gasoline stations tend to use a: