The management of a large chain of convenience stores has noticed that customers in affluent neighborhoods are substantially less price-sensitive than customers in middle-income neighborhoods. Which of the following pricing would be appropriate? Periodic pricing Promotion discount Zone pricing Delivered pricing

The management of a large chain of convenience stores has noticed that customers in affluent neighborhoods are substantially less price-sensitive than customers in middle-income neighborhoods. Which of the following pricing would be appropriate? Periodic pricing Promotion discount Zone pricing Delivered pricing

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.

Question

The management of a large chain of convenience stores has noticed that customers
in affluent neighborhoods are substantially less price-sensitive than customers in
middle-income neighborhoods. Which of the following pricing would be appropriate?
Periodic pricing
Promotion discount
Zone pricing
Delivered pricing

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