Which of the following occurs when manufacturers or wholesalers attempt to force retailers to charge a certain price for their products?
A) horizontal price-fixing
B) vertical price-fixing
C) predatory pricing
D) internal reference pricing
E) assimilation pricing

Question

Quizplus · Accepted Answer

Vertical price-fixing occurs when manufacturers or wholesalers attempt to force retailers to charge a certain price for their products. This is different from horizontal price-fixing, which occurs when competitors in the same industry collude to set prices. Predatory pricing is a strategy used to drive competitors out of the market by temporarily setting prices below cost. Internal reference pricing is a consumer behavior concept where customers compare prices with their past experiences or expectations. Assimilation pricing is a psychological pricing strategy that sets prices closer to the consumer's budget to increase perceived value.

Which of the Following Occurs When Manufacturers or Wholesalers Attempt