Practicing Success
Practicing Success
CUET Preparation Today
| The street vendor selling clothes in Sarojini Nagar Market follows which of the following methods of pricing? |
Variable pricing Penetration Pricing Skimming Pricing Cost Plus Pricing |
| Variable pricing |
| One of the classic examples of the use of variable pricing has to do with street vendors who sell various types of small goods. Often, there is a standard price posted for each item on sale. If the vendor really wants to sell an item, and determines that a prospective buyer is not willing to pay the posted price, he or she may engage the individual in a negotiation of the sale price. Sometimes referred to as dickering, the buyer and seller make offers back and forth until they can settle on a price that both believe is fair. Throughout the process, the buyer tries to drive the price down as much as possible, while the seller attempts to obtain the highest possible return from the sale. |
