Outcome # 5 / Legal

Question 1

Deceptive or illegal practice

Answer 1

Deceptive reference prices

regular price - volume test
a time-test

Question 2

loss leader pricing

Answer 2

Loss leader pricing takes the tactic of leader pricing one step further by lowering the price below the store’s cost.

Question 3

Bait and switch

Answer 3

luring customers into the store with a very low advertised price on an item (the bait), only to aggressively pressure them into purchasing a higher-priced item (the switch) b

Question 4

Predatory pricing

Answer 4

A firm’s practice of setting a very low price for one or more of its products with the intent of driving its competition out of business; illegal under the Competition Act.

Question 5

Price discrimination

Answer 5

The practice of selling the same product to different resellers (wholesalers, distributors, or retailers) or to the ultimate consumer at different prices

Question 6

Price fixing

Answer 6

The practice of colluding with other firms to control prices.