Asked by
casey mcgeehan
on Dec 15, 2024
Verified
Consumers buy water and soda from vending machines. Usually the price of each of these products is about $1.50. If a marketer charges a significantly higher price for such products dispensed by vending machines, such as $2.50 per item, sales are likely to decline. Thus, marketers tend to be very consistent in the prices they charge for vending machine products. This is an example of marketers employing a ________ strategy.
A) below-market pricing
B) skimming pricing
C) penetration pricing
D) loss-leader pricing
E) customary pricing
Customary Pricing
A pricing strategy based on the standard or most common price point for products or services in a particular market or industry.
Vending Machine Products
Items sold through automatic retailing machines that require minimal human intervention, ranging from snacks and beverages to electronics and personal care items.
Significantly Higher Price
A pricing strategy or situation where goods or services are offered at prices considerably above the average market level, often reflecting superior quality or exclusivity.
- Comprehend the relevance of customary pricing approaches in distinct market contexts.
Verified Answer
DF
Learning Objectives
- Comprehend the relevance of customary pricing approaches in distinct market contexts.