Pablo owns a chain of toy stores in key markets across the country.He wanted to price the newest toy robots so that he could secure the most profit from its sale.He knew from the past that a sophisticated method was to conduct a pricing experiment.What is the downside to running an experiment?
A) It takes up employees' time while they are collecting the surveys.
B) The store will lose profits in stores where the robots are priced either too high or too low.
C) It will anger customers who travel long distances to go to more than one store.
D) The vendor won't like having the robots sell for different prices.
E) The additional advertising expense is exorbitant.

Question

Quizplus · Accepted Answer

The downside to running a pricing experiment is that the store may lose profits in stores where the robots are priced either too high or too low, as customers may choose to go to another store with a more favorable price.

Pablo Owns a Chain of Toy Stores in Key Markets