Match the items of the List - I with those of the List - II and indicate the correct code : List -…
Matching the pricing practices with their economic categories: (a) Trade channel discount is a form of (iii) Differential Pricing; (b) Loss leadership (pricing one item low…
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Match the items of the List - I with those of the List - II and indicate the correct code :
| List - I | List - II |
|---|---|
| (a) Trade Channel Discount | (i) Oligopoly Pricing |
| (b) Loss Leadership | (ii) Locational Price Differentials |
| (c) Pricing being non - responsive to changes in the demand and the cost | (iii) Differential Pricing |
| (d) Basing Point Pricing | (iv) Product - Line Pricing |
Answer and explanation
Correct answer B
Matching the pricing practices with their economic categories: (a) Trade channel discount is a form of (iii) Differential Pricing; (b) Loss leadership (pricing one item low to attract buyers to the full assortment) is a strategy under (iv) Product-Line Pricing; (c) Pricing that is rigid and non-responsive to moderate changes in demand and cost (kinked demand) characterizes (i) Oligopoly Pricing; and (d) Basing-point pricing generates (ii) Locational (geographical) price differentials.
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UGC NET Commerce