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A Retailer Purchased a Gross (144)of Silk Shells Each Costing

Question 120

Multiple Choice

A retailer purchased a gross (144) of silk shells each costing exactly $17.Although the only difference between the shells was color,when they were put on the floor,the primary colors were marked $25,the pastel colors were marked $28,and the black and white shells were marked $30.These prices were set most likely because


A) retailers using a price lining strategy will occasionally mark up items based on color,style,and expected consumer demand.
B) fewer people buy black and white shells,so the retailer has to charge a higher price to break even.
C) the retailer is using prestige pricing;black and white shells are more elegant.
D) the primary colors were priced using a penetration strategy,the pastels were priced using a skimming strategy,and the black and white shells were priced using prestige pricing.
E) price lining is essentially the same as above-,at-,or below-market pricing.

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