Which of the following terms describes a firm's actions when it sells the same product to different resellers at different prices?

Question

BlackTom AI · Accepted Answer

First, let's restate the question and options to ensure clarity: The question asks which term best describes a firm's actions when it sells the same product to different resellers at different prices. The options are: Loss-leader pricing, Price discrimination, Deceptive reference pricing, Uniform delivery.
Option 1: Loss-leader pricing. This strategy involves setting a product's price very low—often below cost—to attract customers into a store, with the hope they will buy other, more profitable items. It does not describe charging different prices to different resellers for the same product, so this option is incorrect for the given scenario.
Option 2: Price discrimination. Price discrimination occurs when a seller charges different prices to different buyers or groups for the same product, based on factors like resale potential, market power, or segment-specific demand. This aligns precisely with selling the same product to different resellers at different prices, so this option is correct.
Option 3: Deceptive reference pricing. This is a deceptive practice where a seller misleads consumers about the actual price of a product by implying a comparison to a higher price or a suggested price, but it concerns consumer perception rather than differential pricing to resellers. It does not describe charging different prices to resellers, so it is incorrect here.
Option 4: Uniform delivery. This term is not a standard pricing strategy related to charging varying prices to different resellers; it sounds more like a logistics or distribution term, which does not address price differences. Therefore, it is not the right descriptor for the scenario.
In summary, the concept described—charging different prices to different resellers for the same product—fits the definition of price discrimination, while the other options describe distinct pricing or marketing practices that do not match the situation described in the question.

Which of the following terms describes a firm's actions when it sells the same product to different resellers at different prices?

View Explanation

Log in for full answers

Similar Questions

Who usually benefits from price discrimination?

Selling the same goods to different targeted groups at different prices is called:

Price discrimination is

Assume that a profit-maximizing monopoly is charging a single price. If the monopoly can price discriminate and charge each consumer what he or she is willing to pay, which of the following will occur?

Price discrimination is not practiced very often in the US economy.

Baseball ticket sellers charge a different price for adults and children. Ballpark concession stands charge the same prices for products sold to any customer. The baseball ticket sellers are providing a successful example of

Price discrimination is always legal in the United States.

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler