Consumers buy water and soda from vending machines.Traditionally, the price of each of these products is about $1.00.If a marketer charges a significantly higher price for such products dispensed by vending machines, sales are likely to decline.In order to avoid such declines in sales, marketers tend to be very consistent in the price charged for vending machine products.This is an example of marketers employing a __________ strategy.
A)below-market pricing
B)skimming pricing
C)penetration pricing
D)customary pricing
E)loss-leader pricing

Question

Quizplus · Accepted Answer

Customary pricing is the strategy of setting prices at a consistent level based on what customers typically expect to pay for a particular product. In the case of vending machine products like water and soda, customers have come to expect a price of around $1.00 per item. By sticking to this customary price, marketers can avoid sales declines that might result from price increases.

Consumers Buy Water and Soda from Vending Machines