CFA Practice Question

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CFA Practice Question

Which pricing strategy is NOT an example of price discrimination?

A. tiered pricing
B. dynamic pricing
C. bundling
Correct Answer: C

Tiered pricing is a method where sellers segment the pricing of their products or services to suit their various target markets.

A dynamic pricing strategy is a type of price discrimination that tries to find the optimum price point at any time. Price changes can be based on the perception of how much a consumer is willing to pay at a specific time for an item, competitors pricing and other variables.

Bundle pricing is a strategy where companies combine complementary products / services together and offer them at a single (often reduced) price.

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