1) An airline advertises a seat sale but has only 2 seats per flight available at that price. Although Gordon calls immediately to make reservations, he is told the sale seats are sold, and is offered seats at a higher price. Gordon would be justified in suspecting the airline of A) baiting and switching. B) over-regulating. C) rain-checking. D) predatory pricing. E) double ticketing.
61) An airline advertises a seat sale but has only 2 seats per flight available at that price. Although Gordon calls immediately to make reservations, he is told the sale seats are sold, and is offered seats at a higher price. Gordon would be justified in suspecting the airline of
A) baiting and switching.
B) over-regulating.
C) rain-checking.
D) predatory pricing.
E) double ticketing.
62) When a large retailer moves into town and sets an extremely low price in an attempt to undercut all other competitors and place them in a difficult financial position, it is pursuing what kind of pricing strategy?
A) penetration pricing
B) predatory pricing
C) loss leader pricing
D) price discounting
E) price skimming
63) A local store owned by a large pizza chain decided to lower its prices for an extended period in an attempt to run the local pizza store out of business. This practice is known as
A) price fixing.
B) predatory pricing.
C) fair pricing.
D) bait and switch selling.
E) double ticketing.
64) A Quebec superior court judge fined four prominent cement companies a total of $5.88 million for entering into an agreement with each other to share the sales of ready-mix concrete for public projects in Quebec City. This is an example of
A) predatory pricing.
B) price fixing.
C) bait and switch selling.
D) double ticketing.
E) fair pricing.
65) A small hardware store files a complaint to the Federal Bureau of Competition Policy concerning alleged predatory pricing practices of a mega-retailer of hardware in the same market. Chances are that there will not be a conviction because
A) it is likely that the small hardware store owner is reacting emotionally, not rationally to increased competition.
B) the mega store probably has access to better legal representation.
C) there is a huge backup in the department of similar complaints and chances of this complaint being heard are slim.
D) it is unlikely that the mega-retailer would need to use such a tactic to steal market share.
E) it is difficult to prove that the prices are unreasonably low, especially since the mega store can take advantage of cost reductions resulting from economies of scale.
66) Hudson's Bay Co. was recently fined heavily for promoting a bike sale when in fact there wasn't a sale. It was concluded that the retailer misled consumers by creating an artificial sense of urgency when the bikes had actually been at the low prices for a much longer time. This is an example of unethical pricing practices relating to
A) price fixing.
B) double ticketing.
C) ordinary price claims.
D) predatory pricing.
E) the manufacturer's suggested list price.
67) A hardware store has advertised a sale on bench saws. Andrew arrives ready to purchase one but finds that none are available. In fact, the store has been sold out since the first hour of the sale. The store had not had a reasonable amount of the sale item in stock. The clerk attempts to sell Andrew a much more expensive model. Andrew is a victim of ________ selling.
A) price fixed
B) double ticket
C) high/low price
D) predatory
E) bait and switch
68) Before promoting a % off sale, an item must be sold at the regular price. To be considered a "regular price" the item must be sold at that price for ________ of the 6 months prior to the sale advertisement, and ________ of the sales volume of the item must have occurred at that price.
A) 50%; 25%
B) 75%; 50%
C) 25%; 25%
D) 50%; 50%
E) 75%; 25%
69) For a company or store to avoid accusations of bait and switch selling, it must prove that the lack of supply of an advertised sale item is beyond its control, or more simply
A) bribe the customer.
B) offer a raincheck.
C) send the customer to a competitor.
D) go to court.
E) increase the regular price.
70) The acronym M.S.L.P. stands for
A) misused selling list percentage.
B) marginal selling level plan.
C) mean sales level price.
D) market segmented lean price.
E) manufacturer's suggested list price.
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