Dynamic pricing is used to:
a. implement bait pricing to get more loyal customers.
b. perform price discrimination among its customers.
c. raise prices to maximize a company's revenues.
d. attain price equilibrium.
ANSWER: c
Dynamic pricing is a strategy whereby prices are adjusted over time to maximize a company's revenues. When competitive pressures are high, a company must know when it can raise prices to maximize its revenues.
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When writing sales contracts, a salesperson should consult with an attorney when:
A. The preprinted form contract does not clearly set forth the agreement terms. B. The seller requests a legal opinion of a buyer's offer. C. The legal description is not available. D. His or her broker has specifically instructed him or her to do so.
Other things held equal, a bond with a call provision is worth more to investors than a bond
without a call provision. Indicate whether the statement is true or false