The common pricing practice which is considered illegal. Introduction: The strategy used by the companies to set the price of their products and services is known as the pricing strategy.

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Answer 1

Question

Chapter 14.8, Problem 1PC

Summary Introduction

To determine: The common pricing practice which is considered illegal.

Introduction: The strategy used by the companies to set the price of their products and services is known as the pricing strategy.

Expert Solution & Answer

Explanation of Solution

Even though it is always unethical to mislead in advertisements, a particular amount of puffery would be allowed. Apart from this allowed exception, there are certain points which are considered unethical; these points are explained as follows:

Deceptive reference pricing: Deceptive reference price means where the reference prices are deflated or fictitious which might harm the consumers. This kind of reference prices is considered to be unethical or illegal.
Loss-leader pricing: Loss-leader pricing is the tactics used by the store owners to mislead the customers. This store owners lowers the price to below store’s cost but with a markup of 100%. This type of discount does not consider to be legal in some states if the manufacturer is captivating the promotion cost of the firm.
Bait and switch: In this strategy, sellers advertise deceptive prices without any intention to sell it. This type of strategy is also considered unethical in the country.

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How can a business' pricing decisions be affected by the government's actions?

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What common pricing practices are considered to beillegal or unethical?

Answer 2

Question

Chapter 14.8, Problem 1PC

Summary Introduction

To determine: The common pricing practice which is considered illegal.

Introduction: The strategy used by the companies to set the price of their products and services is known as the pricing strategy.

Expert Solution & Answer

Explanation of Solution

Even though it is always unethical to mislead in advertisements, a particular amount of puffery would be allowed. Apart from this allowed exception, there are certain points which are considered unethical; these points are explained as follows:

Deceptive reference pricing: Deceptive reference price means where the reference prices are deflated or fictitious which might harm the consumers. This kind of reference prices is considered to be unethical or illegal.
Loss-leader pricing: Loss-leader pricing is the tactics used by the store owners to mislead the customers. This store owners lowers the price to below store’s cost but with a markup of 100%. This type of discount does not consider to be legal in some states if the manufacturer is captivating the promotion cost of the firm.
Bait and switch: In this strategy, sellers advertise deceptive prices without any intention to sell it. This type of strategy is also considered unethical in the country.

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Answer 3

Question

Chapter 14.8, Problem 1PC

Summary Introduction

To determine: The common pricing practice which is considered illegal.

Introduction: The strategy used by the companies to set the price of their products and services is known as the pricing strategy.

Expert Solution & Answer

Explanation of Solution

Even though it is always unethical to mislead in advertisements, a particular amount of puffery would be allowed. Apart from this allowed exception, there are certain points which are considered unethical; these points are explained as follows:

Deceptive reference pricing: Deceptive reference price means where the reference prices are deflated or fictitious which might harm the consumers. This kind of reference prices is considered to be unethical or illegal.
Loss-leader pricing: Loss-leader pricing is the tactics used by the store owners to mislead the customers. This store owners lowers the price to below store’s cost but with a markup of 100%. This type of discount does not consider to be legal in some states if the manufacturer is captivating the promotion cost of the firm.
Bait and switch: In this strategy, sellers advertise deceptive prices without any intention to sell it. This type of strategy is also considered unethical in the country.

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Answer 4

Question

Chapter 14.8, Problem 1PC

Summary Introduction

To determine: The common pricing practice which is considered illegal.

Introduction: The strategy used by the companies to set the price of their products and services is known as the pricing strategy.

Expert Solution & Answer

Explanation of Solution

Even though it is always unethical to mislead in advertisements, a particular amount of puffery would be allowed. Apart from this allowed exception, there are certain points which are considered unethical; these points are explained as follows:

Deceptive reference pricing: Deceptive reference price means where the reference prices are deflated or fictitious which might harm the consumers. This kind of reference prices is considered to be unethical or illegal.
Loss-leader pricing: Loss-leader pricing is the tactics used by the store owners to mislead the customers. This store owners lowers the price to below store’s cost but with a markup of 100%. This type of discount does not consider to be legal in some states if the manufacturer is captivating the promotion cost of the firm.
Bait and switch: In this strategy, sellers advertise deceptive prices without any intention to sell it. This type of strategy is also considered unethical in the country.

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Answer 5

Chapter 14.8, Problem 1PC

Summary Introduction

To determine: The common pricing practice which is considered illegal.

Introduction: The strategy used by the companies to set the price of their products and services is known as the pricing strategy.

Expert Solution & Answer

Explanation of Solution

Even though it is always unethical to mislead in advertisements, a particular amount of puffery would be allowed. Apart from this allowed exception, there are certain points which are considered unethical; these points are explained as follows:

Deceptive reference pricing: Deceptive reference price means where the reference prices are deflated or fictitious which might harm the consumers. This kind of reference prices is considered to be unethical or illegal.
Loss-leader pricing: Loss-leader pricing is the tactics used by the store owners to mislead the customers. This store owners lowers the price to below store’s cost but with a markup of 100%. This type of discount does not consider to be legal in some states if the manufacturer is captivating the promotion cost of the firm.
Bait and switch: In this strategy, sellers advertise deceptive prices without any intention to sell it. This type of strategy is also considered unethical in the country.

Answer 6

Chapter 14.8, Problem 1PC

Summary Introduction

To determine: The common pricing practice which is considered illegal.

Introduction: The strategy used by the companies to set the price of their products and services is known as the pricing strategy.

Expert Solution & Answer

Explanation of Solution

Even though it is always unethical to mislead in advertisements, a particular amount of puffery would be allowed. Apart from this allowed exception, there are certain points which are considered unethical; these points are explained as follows:

Deceptive reference pricing: Deceptive reference price means where the reference prices are deflated or fictitious which might harm the consumers. This kind of reference prices is considered to be unethical or illegal.
Loss-leader pricing: Loss-leader pricing is the tactics used by the store owners to mislead the customers. This store owners lowers the price to below store’s cost but with a markup of 100%. This type of discount does not consider to be legal in some states if the manufacturer is captivating the promotion cost of the firm.
Bait and switch: In this strategy, sellers advertise deceptive prices without any intention to sell it. This type of strategy is also considered unethical in the country.

Answer 7

Chapter 14.8, Problem 1PC

Summary Introduction

To determine: The common pricing practice which is considered illegal.

Introduction: The strategy used by the companies to set the price of their products and services is known as the pricing strategy.

Answer 8

Expert Solution & Answer

Explanation of Solution

Even though it is always unethical to mislead in advertisements, a particular amount of puffery would be allowed. Apart from this allowed exception, there are certain points which are considered unethical; these points are explained as follows:

Deceptive reference pricing: Deceptive reference price means where the reference prices are deflated or fictitious which might harm the consumers. This kind of reference prices is considered to be unethical or illegal.
Loss-leader pricing: Loss-leader pricing is the tactics used by the store owners to mislead the customers. This store owners lowers the price to below store’s cost but with a markup of 100%. This type of discount does not consider to be legal in some states if the manufacturer is captivating the promotion cost of the firm.
Bait and switch: In this strategy, sellers advertise deceptive prices without any intention to sell it. This type of strategy is also considered unethical in the country.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 14.1 - Prob. 1PC Ch. 14.1 - Prob. 2PC Ch. 14.3 - Prob. 1PC Ch. 14.3 - Prob. 2PC Ch. 14.4 - Prob. 1PC Ch. 14.4 - Prob. 2PC Ch. 14.5 - Prob. 1PC Ch. 14.7 - Prob. 1PC Ch. 14.7 - Prob. 2PC Ch. 14.8 - Prob. 1PC

The common pricing practice which is considered illegal. Introduction: The strategy used by the companies to set the price of their products and services is known as the pricing strategy.

Concept explainers

To determine: The common pricing practice which is considered illegal.

Introduction: The strategy used by the companies to set the price of their products and services is known as the pricing strategy.

Explanation of Solution

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Chapter 14 Solutions

The common pricing practice which is considered illegal. Introduction: The strategy used by the companies to set the price of their products and services is known as the pricing strategy.

Concept explainers

To determine: The common pricing practice which is considered illegal. Introduction: The strategy used by the companies to set the price of their products and services is known as the pricing strategy.

Explanation of Solution

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Chapter 14 Solutions

To determine: The common pricing practice which is considered illegal.

Introduction: The strategy used by the companies to set the price of their products and services is known as the pricing strategy.