Question

Kyla goes to a car dealership to purchase a new Honda Accord. She is not willing to pay the listed sticker price for the car, and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon. This is an example of __ pricing.

A) Penetration
B) Skimming
C) Negotiated
D) Bundle

Answer 1

Kyla engaged in negotiated pricing by working with the car dealership to agree on a final price for a new Honda Accord, which differs from other strategies like penetration, skimming, or bundle pricing.

Step-by-step explanation:

Kyla's act of negotiating the price of a new Honda Accord rather than paying the sticker price is an example of negotiated pricing. In negotiated pricing, a buyer and seller go through a process of bargaining to agree on a final price, which is a common practice in many large purchases such as buying a car, where both parties can reach a mutually satisfactory agreement. This is distinct from other pricing strategies such as penetration pricing, which involves setting a low price to enter a market, or skimming pricing, which involves setting high prices initially to target consumers willing to pay more. Lastly, the concept of bundle pricing, where multiple products or services are sold together at a lower price compared to purchasing each item separately, does not apply in this scenario.