The manager at Target puts a sign up next to a Samsung audio system that reads, "Only $299.99! $60 less than at Best Buy." This is an example of what type of pricing strategy?
A) Random discounting
B) Periodic discounting
C) Comparison discounting
D) Penetration pricing
E) Everyday low prices

Question

Quizplus · Accepted Answer

The pricing strategy being used by the manager at Target is comparison discounting, where the product is priced lower in comparison to a specific competitor. In this case, the Target price for the Samsung audio system is compared to the Best Buy price, which is $60 higher.

The Manager at Target Puts a Sign Up Next to a Samsung