The correct answer is: D. a-1, b-2, c-3, d-4
a. Trade channel discount: This is a type of differential pricing, where a company offers a lower price to its distributors or retailers in order to encourage them to carry its products.
b. Loss leadership: This is a type of pricing strategy where a company sells a product at a loss in order to attract customers to its other products.
c. Differential pricing: This is a type of pricing strategy where a company charges different prices for the same product to different customers, based on factors such as location, quantity purchased, or time of purchase.
d. Basing point pricing: This is a type of pricing strategy where a company sets a price for its product at a particular location, and then charges the same price to all customers, regardless of their location.
Here is a brief explanation of each option:
a. Trade channel discount: A trade channel discount is a price reduction that a manufacturer offers to its distributors or retailers in order to encourage them to carry its products. This type of discount is often used to increase the availability of a product, to build relationships with distributors, or to encourage retailers to stock more of a product.
b. Loss leadership: Loss leadership is a pricing strategy where a company sells a product at a loss in order to attract customers to its other products. This strategy is often used by companies that have a strong brand or a loyal customer base. By selling a product at a loss, the company can attract customers into its stores, where they may also purchase other products at a profit.
c. Differential pricing: Differential pricing is a pricing strategy where a company charges different prices for the same product to different customers, based on factors such as location, quantity purchased, or time of purchase. This type of pricing is often used to reflect the different costs that a company incurs in serving different customers. For example, a company may charge a higher price for a product that is sold in a high-traffic location, or a lower price for a product that is sold in a low-traffic location.
d. Basing point pricing: Basing point pricing is a pricing strategy where a company sets a price for its product at a particular location, and then charges the same price to all customers, regardless of their location. This type of pricing is often used to simplify the pricing process and to avoid the costs of shipping products to different locations.