Consumers buy water and soda from vending machines. Usually the price of each of these products is about $1.50. If a marketer charges a significantly higher price for such products dispensed by vending machines, such as $2.50 per item, 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

Customary pricing is a strategy where prices are set at a certain level based on tradition or consumer expectations, which is why marketers keep vending machine prices consistent.

Consumers Buy Water and Soda from Vending Machines