Question

Matching:

A.	The promotion of more expensive products over the product originally purchased
B.	An ordering stimulus commonly used by direct marketers
C.	Establishes the price at the highest possible level
D.	The relative change in demand for a product given a change in its price

__ Up-selling

__ Price Skimming

__ Price Elasticity

__ Sweepstakes

Answer 1

A-Upselling is a sales technique where a seller induces the customer to purchase more expensive items, upgrades or other add-ons in an attempt to make a more profitable sale.  

C-Price skimming is a product pricingstrategy by which a firm charges the highest initial price that customers will pay. As the demand of the first customers is satisfied, the firm lowers the price to attract another, more price-sensitive segment.

D-Price elasticity of demand is an economic measure of the change in the quantity demanded or purchased of a product in relation to its pricechange. Expressed mathematically, it is: Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price.

B-sweepstakes with large grand prizes tend to attract more entries regardless of the odds of winning. Therefore, the value of smaller prizes usually totals much less than that of the top prize. Firms that rely on sweepstakes for attracting customers, such as Publishers Clearing House and Reader's Digest, have also found that the more involved the entry process, the more entrants. Businesses often obtain marketing information about their customers from sweepstakes entries