Consumers buy water and soda from vending machines.Traditionally,the price of each of these products is about $1.25.If a marketer charges a significantly higher price for such products dispensed by vending machines,sales are likely to decline.In order to avoid declines in sales,marketers tend to be very consistent in the prices they charge for vending machine products.This is an example of marketers employing a __________ strategy.
A) below-market pricing
B) skimming pricing
C) penetration pricing
D) loss-leader pricing
E) customary pricing

Question

Quizplus · Accepted Answer

The passage states that marketers tend to be very consistent in the prices they charge for vending machine products in order to avoid declines in sales. This is an example of customary pricing, which involves setting prices based on tradition, standard practice, or past prices.

Consumers Buy Water and Soda from Vending Machines