A furniture store owner allows its salespersons to lower a price by up to ten percent to gain a sale if the buyer appears price sensitive. The owner also instructs salespersons to confer with management about the possibility of higher discounts if needed to make a sale. This example of individually negotiated prices is a form of price discrimination known as
A)alternate versions.
B)haggling.
C)bundling.
D)bad service.

Question

Quizplus · Accepted Answer

This is an example of haggling, as the salespersons are negotiating prices with the customers based on their perceived willingness to pay. The instruction to confer with management for higher discounts also suggests that prices are being negotiated on an individual basis.

A Furniture Store Owner Allows Its Salespersons to Lower a Price