Question

Read the description to determine which type of illegal or unethical price strategy is used. a. A manufacturer favors Retailer A, offering the retailer price discount allowances, but denies these benefits to Retailer B, although it sells the same quantity of the products.b. Push Nonsales items only- A computer store uses the promises of a great value laptop to attract customers into the store while not intending to sell the product but aggressively push more expensive models insteadc. Sell below store’s cost- A large retailer is offering buy one, get one free on popular brand products, selling the two products for less than their cost.d. Harm Competitor’s Business- A retail giant radically cuts prices to drive its competition out of business and monopolize the markete. Horizontal Collusion-Airlines work together to keep airfares artificially high across the country.1. Loss leader pricing2. Bait and switch3. Predatory pricing4. Price discrimination

Answer 1

Answer:

Option A- 4. Price discrimination

Option B - 1. Loss leader pricing

Option C - 2. Bait and Swtich

Option D - 3. Predatory pricing

Explanation:

Price discrimination is a form of unethical pricing strategy by the producer or supplier to attract consumers whereby similar commodities are traded at varying prices to different customers by the same producer. Hence, the perfect illustration is option A

Loss Leader Pricing is another form of unethical pricing technique whereby a commodity is sold or advertised by a producer promotes other sales of more high yield commodities. Hence, the best illustration is option B.

Bait and Switch is a form of illegal pricing strategy whereby the producer promotes commodities of lower cost to greater quality ratio, however, it is such a product tends to be elusive one potential buyer's approach. The perfect example is option C

Predatory pricing is an unethical pricing technique whereby the producer intentionally priced commodities produced such that other customers are unable to compete. The perfect example is option D.