Which of the following is an example of discounting? A) An appliance

QUESTION

Which of the following is an example of discounting?

A) An appliance store offers each of its products at its own price and also offers a lower price if you buy two or more, such as a washer and a dryer, a stove and a refrigerator, a dishwasher and a trash compactor, and so on.
B) An electronics store sells its phones, stereos, televisions, and so on for a regular price and then on occasion holds early-bird specials, holiday sales, one-day-only sales and the like.
C) Every season when a shoe company reveals its new line, it sells the shoes at a crazy low price to catch the attention of buyers. After a while, the price goes up.
D) A used-car company prices all of its cars with numbers that end in 995; that is, a car may be priced at $5,995, $3,995, or $7,995.
E) Coupons and other discounts are not honored at the local convenience store, where all items are priced the same every day.

ANSWER

Answer: B
Explanation: B) Discounting, or high-low pricing, is assigning regular prices to products but then resorting to frequent price-cutting strategies, such as special sales, to undercut the prices of competitors.