If the manager at Best Buy puts a sign up next to a Pioneer stereo that reads, "Only $199.99! $58.01 less than Circuit City," this is an example of what type of pricing strategy?
A) Random discounting
B) Periodic discounting
C) Comparison discounting
D) Penetration discounting
E) Everyday low prices

Question

Quizplus · Accepted Answer

This is an example of comparison discounting, as the pricing strategy compares the discounted price of the Pioneer stereo to its competitor, Circuit City, to indicate a better deal.

If the Manager at Best Buy Puts a Sign Up