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Economics

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Nov 24, 2024

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BMI3C Name: Chapter 7 - Pricing Vitamin Price-Fixing Article 1. Briefly describe the price-fixing scandal. 2. Why, according to the various quoted sources, is price-fixing wrong and punishable by law? 3. If price-fixing is illegal, why do you think it still occurs? 4. What measure has now been put in place to prevent cartels from duping consumers? How does it work? 7.3 – Pricing Strategies Strategy Description Examples 1. Market Skimming 2. Penetration Pricing 3. Competitive Pricing 4. Benchmark Pricing 7.4 - PRICING POLICIES Leader Pricing : Offering a popular product at a low price to attract customers to the store. Example: Price Lining: Putting all the products that are one price in one place in the store.

BMI3C Name: Example: Everyday Low Prices : Stores use sale pricing to position themselves as low-priced stores. They guarantee the customer that the price they pay in the store is the lowest price available. Example: Purchase Discounts: Price reductions in goods and services offered by the seller to the buyer to increase the volume of an order Example: Super Sizing:  Paying a slightly higher price for a larger portion of an item. Example: Premium Prices: Use a high price where there is a uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Example: Interest-Free Pricing : Offering consumers the opportunity to finance their purchase with low or no interest charges for the extent of the contract. Example: Negotiated Pricing:  A buyer makes offers to purchase and a seller makes offer to sell a particular product or service for less than the published price Example: Combo Pricing (bundling): Sellers combine several products in the same package. Example: Psychological Pricing: Using typical consumer behaviour to set prices. Example: Return on Investment (ROI): Prices products to sell them quickly and then invests the money made Example

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