Pentrall Bros

Multiple Choice

Pentrall Bros. is a seller of used automobiles. A research study conducted by the company indicates that customers are not willing to pay more than 70 percent of the market price of a new car for a used car. In light of this, the company makes sure that the prices of used cars are not set higher than 70 percent of the market value. In this scenario, Pentrall Bros. is trying to avoid _____.

A) the endowment effect
B) disposition
C) the sleeper effect
D) repositioning
E) product positioning