Question

Barry's is a chain of retail stores that stocks a large variety of goods and practices high-low pricing. This means that Barry's is likely to ________.

A) have low volume and low markups
B) charge low prices constantly
C) offer numerous sales or discounts
D) compete on the basis of price rather than product or service quality
E) use predatory pricing to eliminate competition

Answer 1

The correct answer is option c. Barry's, employing high-low pricing, likely offers many sales or discounts, rather than maintaining consistently low prices or using predatory practices to eliminate competition.

Step-by-step explanation:

Barry's, a chain of retail stores that uses high-low pricing, is likely to offer numerous sales or discounts. High-low pricing is a strategy where a retailer starts with higher prices but frequently offers sales, promotions, or discounts to lower the prices on goods for a limited time.

This approach creates a sense of urgency and encourages customers to make purchases during the sale periods. This is different from constant low pricing or predatory pricing.