Sunshine Cereals has been in the market for seven decades.They attribute their success to maintaining an almost stable product price in the face of inflation as well as stiff competition from rival firms.The management at Sunshine Cereals knows that any substantial increase in product price would translate into loss of sales as consumers are used to paying a specific price for their cereals.This specific price is an example of (a):
A)customary price.
B)value price.
C)full-cost price.
D)incremental-cost price.

Question

Quizplus · Accepted Answer

The specific price that consumers are used to paying for Sunshine Cereals is an example of a customary price. This means that over time, customers have become accustomed to paying a specific price for the product, and any significant increase in price could lead to a loss of sales. This is common in many industries where companies strive to maintain price stability to retain their customers and avoid losing market share to competitors. Therefore, the best choice is A) Customary price.

Sunshine Cereals Has Been in the Market for Seven Decades