A local restaurant sells lunch entrees for $7.95, $9.95, and $11.95. From this information, you can infer the restaurant uses which of the following?
A) price discrimination
B) odd-even pricing and price lining
C) dynamic pricing and price lining
D) reference pricing and value pricing
E) dynamic pricing and loss leader pricing

Question

Quizplus · Accepted Answer

Price lining refers to creating different price points for similar products to attract different groups of customers. In this case, the restaurant is using odd-even pricing for the three lunch entrees, which is a form of price lining. Therefore, option B is the correct answer. The other options (A, C, D, E) do not accurately describe the pricing strategy used by the restaurant.

A Local Restaurant Sells Lunch Entrees for $7