Cosmetic retailers often have one price for each item but another price for three or four similar items with the same brand,all attractively packaged together.These retailers are using
A) price lining.
B) slotting allowances.
C) cumulative quantity discounts.
D) loss leaders.
E) price bundling.

Question

Quizplus · Accepted Answer

The scenario describes the practice of price bundling, where retailers offer multiple items from the same brand in an attractive bundle at a discounted price. This strategy is commonly used in cosmetics retailing to encourage customers to purchase more products and increase overall sales revenue. Price lining refers to offering different prices for different quality levels of products, slotting allowances refer to fees charged by retailers for placing products on their shelves, cumulative quantity discounts refer to offering discounts based on the quantity purchased, and loss leaders refer to products sold at a loss to attract customers.

Cosmetic Retailers Often Have One Price for Each Item but Another