Which of the following pricing approaches should be used by a profit-oriented retailer if its demand curve is down-sloping to the right for awhile—but then actually bends back to the left at lower prices?

Which of the following pricing approaches should be used by a profit-oriented retailer if its demand curve is down-sloping to the right for awhile—but then actually bends back to the left at lower prices?


A. Psychological pricing

B. Prestige pricing

C. Average-cost pricing

D. Bait pricing

E. Penetration pricing



Answer: B. Prestige pricing


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