Pricing strategies issue in retailing :)

Price discrimination is a selling strategy that charges customers different prices for the same product or service based on what the seller thinks they can get the customer to agree to

True

False

With price discrimination, a seller charges retailers a different fee for the same product or service.

True

False

Price discrimination is less valuable when the profit that is earned as a result of separating the markets is greater than the profit that is earned as a result of keeping the markets combined

True

False

With price discrimination, the company looking to make the sales identifies different market segments, such as domestic and industrial users, with different price elasticities.

True

False

Markets must be kept separate by

Time, biological

Time physical, distance and demographic

Time, physical, distance, and nature

First-degree discrimination, or perfect price discrimination, occurs when a business charges the maximum possible price for each unit consumed. Second-degree price discrimination occurs when a company charges a different price for different quantities consumed, such as quantity discounts on bulk purchases. Third-degree price discrimination occurs when a company charges a different price to different consumer groups.

True

False

Resale price maintenance is a vendors encourage retailers to sell their merchandise at a certain price

True

False

The concept of price ceiling in the resale price maintenance is a government want to protect consumers from condition that could make commodities prohibitively expensive

True

False

Types of forms of resale price maintenance

Collective resale price and individual resale price

First degree and second degree price discrimination

Vertical scale fixing and horizontal prices fixing

The disadvantages of resale price maintenance

It eliminates price competition at the retail level

It keep the price higher

It prevents quality deterioration.

What is horizontal price fixing? =Horizontal price fixing is involves agreements between retailers that in direct competition with each other to set the same prices.

True

False

Impacts Of using Horizontal Price-Fixing

Reducing Consumer Surplus

It promotes fair trade practices

It kills competition.

Which act and section will be prosecuted for violating the predatory pricing law?

Competition Act,2007 under section 27

Competition Act,2002 under section 4

Competition Act,2009 under section 6

What is the benefit of predatory pricing?

Financially weaker competitors will be driven from the market.

Financially that wise can stay with a longer time and plan with good strategy pricing.

Ome retailers may use comparative price for advertising to deceive the consumer .

True

False

Pricing strategies issue in retailing :)

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