________ occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.

Question

BlackTom AI · Accepted Answer

We start by restating the prompt to anchor our analysis: the question asks which term describes a situation where a seller states prices or price savings that mislead consumers or are not actually available to consumers.
Option 1: Price maintenance. This refers to a practice where a retailer or manufacturer imposes or enforces aminimum resale price or fixes prices across sellers. It does not inherently involve misleading or unavailable discounts, but rather standardizes pricing. Therefore it does not capture the idea of misleading price statements.
Option 2: Price discrimination. This is the practice of charging different customers different prices for the same product, often based on willingness to pay, location, or other factors. While it relates to pricing practices, it centers on differential pricing rather than misleading or unavailable price savings to consumers, so it isn’t the best fit for the described scenario.
Option 3: Predatory pricing. This strategy involves setting prices extremely low to drive competitors out of the market, with the intention of later raising prices. It concerns competitive dynamics and anti-competitive intent, not specifically about deceiving consumers with misrepresented savings or unavailable offers.
Option 4: Deceptive pricing. This is the direct match to the description: presenting prices or price savings in a way that misleads consumers or that cannot actually be obtained by consumers. It aligns with false or misleading advertising around price reductions, discounts, or terms. This option is the one that directly corresponds to misrepresentation of price information.
Option 5: Price-fixing. This occurs when competing sellers agree to set prices at a certain level, rather than competing on price. It involves collusion and anti-competitive behavior, not the act of misleading consumers about price availability or savings.
In summary, the core idea in the prompt is about deception in price representation. The remaining options describe other pricing strategies or anti-competitive practices that do not fit the description of misrepresenting price or savings to consumers. Deceptive pricing specifically targets misrepresentation of price information, making it the correct characterization of the scenario.

Quiz: Ch 09 Quiz

________ occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.

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