A major problem associated with a retail policy of price lining is:
A) it increases the probability of cognitive dissonance.
B) it complicates a consumer's buying decisions.
C) what to do when merchandise costs increase.
D) that it is not useful when trade-ins are involved.
E) the policy cannot be used with demand-based pricing.

Question

Quizplus · Accepted Answer

Price lining involves setting a limited number of prices for a specific group of merchandise. The major problem with this strategy arises when the costs of merchandise increase, making it challenging to maintain the predetermined price points without affecting profit margins or customer satisfaction.

A Major Problem Associated with a Retail Policy of Price