Consumers buy candy bars, snacks, and soda pop from vending machines. Traditionally, the price of each of these products is about 60 cents. If a marketer charges a significantly higher price for such products dispensed by vending machines, sales are likely to decline. In order to avoid such declines in sales, marketers tend to be very consistent in the price charged for vending machine products. This is an example of marketers employing a __________ strategy.
A)skimming pricing
B)below-market pricing
C)penetration pricing
D)customary pricing

Question

Quizplus · Accepted Answer

Customary pricing is a strategy where products are priced at a traditional, expected or customary level in order to maintain consistency and avoid declines in sales. In this scenario, the traditional price for vending machine products is 60 cents, and consistent pricing at this level is likely to be expected by consumers. Skimming pricing involves charging a high price for a new product with unique features, penetration pricing involves charging a low price to attract customers and gain market share, and below-market pricing involves charging less than competitors. None of these strategies apply to the scenario described.

Consumers Buy Candy Bars, Snacks, and Soda Pop from Vending