The purpose of randomized pricing is to reduce: a) Consumer price information only. b) Competitor...
Question:
The purpose of randomized pricing is to reduce:
a) Consumer price information only.
b) Competitor price information only.
c) Both consumer and competitor information about price.
d) The firm's pricing inflexibility.
Pricing Strategy:
Pricing strategy is the approach a firm uses to set the price of its products in order to maximize profits. when determining a pricing strategy, a business should consider factors like production and distribution expenses, target client base, and competitors offerings.
Answer and Explanation: 1
The answer to this question is:
c. Both consumer and competitor information about price.
Randomized pricing refers to a pricing technique in which a company deliberately varies its prices so as to conceal price information from consumers as well as rival businesses. Random changing of the price makes it difficult for competitors and consumers to learn about the pricing method of the firm.
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Pricing Strategy in Marketing: Definition, Types & Examples
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Chapter 12 / Lesson 11
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Learn about pricing strategies. Understand what pricing models are, identify the different types of pricing strategies, and see examples of pricing strategies.
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