Consumers buy water and soda from vending machines. Traditionally, the price of each of these products is about $1.25. If a marketer charges a significantly higher price for such products dispensed by vending machines, such as $2.00 per item, sales are likely to decline. Thus marketers tend to be very consistent in the prices they charge for vending machine products. This is an example of marketers employing a __________ strategy.

Question

Quizplus · Accepted Answer

Customary pricing refers to the practice of setting prices at a level that is consistent with historical pricing patterns, industry norms or consumer perceptions of the product's value. In the case of vending machines, consumers have come to expect certain prices for products such as water and soda, and deviation from those prices would likely cause a decline in sales. Therefore, vending machine marketers tend to employ customary pricing strategies in order to maintain consistency and meet customer expectations.

Consumers Buy Water and Soda from Vending Machines