Price advertisements should never
A) include "puffery."
B) deceive customers to the point of doing harm.
C) include the MSRP.
D) use advertising allowances to increase sales promotion.
E) use price skimming after using price penetration.

Question

Quizplus · Accepted Answer

Price advertisements should never deceive customers to the point of doing harm, as it can damage the reputation of the company and result in legal issues. Puffery, the use of exaggerated statements in advertising, is not illegal but can be considered unethical. Including the MSRP (Manufacturer's Suggested Retail Price) can be useful for customers to understand the value of a product, but it should not be the only price listed. Using advertising allowances to increase sales promotion can be a common practice, but it should not mislead customers. Price skimming and price penetration are pricing strategies that can be used in certain situations.

Price Advertisements Should Never