Setting prices is a critical decision in implementing a retail strategy because price is a critical component in customers perceived value. In setting prices, retailers consider the price sensitivity of customers in their target market, the cost of merchandise and services offered, competitive prices, and ethical restrictions. Retailers need to consider legal and ethical issues when setting pricing. Some of the legal and ethical pricing issues are predatory pricing, resale price maintenance, horizontal price fixing, bait$-$and$-$switch tactics, scanned versus posted prices, and deceptive reference prices. Match each pricing issue with its corresponding definition and example.Predatory Pricing Bait and Switch Horizontal Price Fixing Scanned versus posted price Geofencing Deceptive Reference PricesMatch each of the options above to the items below.A method for establishing merchandise prices for the purpose of driving competition from the marketplace. $($Example: A local coffee shop opened up across the street from a national chain and the national chain radically lowered their prices.$)$ Involves agreements between retailers that are in direct competition with each other to set the same prices. $($Example: Two major department stores decide to sell name$-$brand luggage at a discounted price to discourage competition from a specialty luggage store.$)$ An unlawful, deceptive practice that lures customers to the store by advertising a product at a lower than usual price, then inducing customers to switch to another higher$-$priced model. $($Example: An electronics store advertised a $32-$inch flat screen television for $$399\mathrm{.}00.$ When customers arrived, the store did not have any of those televisions, but had another model for sale at $$499\mathrm{.}00.)$ Some retailers might be accused of price$-$scanning accuracy where displayed prices do not match scanned prices. $($Example: Jill picked a dress off the rack for $$29\mathrm{.}99,$ so she purchased it$.$ When she got home, she realized that the cashier charged her $$31\mathrm{.}99$ for the dress.$)$ Sometimes the retailer inflates or misrepresents the reference price to increase the customers perception of value. $($Example: The MSRP on a blouse is $$50\mathrm{.}00.$ The retailer gets a very special deal, and retails it from the day it is received at $$30\mathrm{.}00.$ It prepares in$-$store signage that says Regularly $$50\mathrm{.}00,$ special price, $$30\mathrm{.}00.)$ Offering localized promotions for retailers in close proximity to the customer, as determined by phone location technology. $($Example: Promotional coupons being sent by text to customers $($who have opted in$)$ within a certain radius of a retailer.$)$