1. When consumers decide to purchase a book from Amazon.com, the company's website often suggests that consumers...

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Question:

1. When consumers decide to purchase a book from Amazon.com, the company's website often suggests that consumers purchase an additional book by the same author for a combined price that is lower than the two books would sell for separately. Amazon.com is using:

a. demand-backward pricing

b. bait pricing

c. leader pricing

d. product-bundle pricing

2. A computer store regularly advertises a very low price for a well-known brand of disks. When the customers come in, however, the salespeople point out the disadvantages of this particular brand and try to persuade them to buy other disks at much higher prices. This retailer is using:

a. demand-backward pricing

b. bait pricing

c. leader pricing

d. product-bundle pricing

3. Walgreens is trying to attract customers by advertising a special bargain price on a popular brand of cold remedy during the cold season is using:

a. demand-backward pricing

b. bait pricing

c. leader pricing

d. product-bundle pricing

4.Wellness Inc. has set a suggested retail list price of $30 on its new vitamin tablets on the assumption that its target market will find the product attractive at this price. From this suggested retail list price, Wellness Inc. has subtracted its usual chain of markups for wholesalers and retailers to obtain its own selling price of $15. This is:

a. demand-backward pricing

b. bait pricing

c. leader pricing

d. product-bundle pricing