📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    A bank introduces dynamic interest rates linked directly

    to customers’ credit scores. This strategy primarily reflects:
    A Mass pricing Correct Answer Incorrect Answer
    B Price discrimination Correct Answer Incorrect Answer
    C Skimming pricing Correct Answer Incorrect Answer
    D Penetration pricing Correct Answer Incorrect Answer
    E Cost-plus pricing Correct Answer Incorrect Answer

    Solution

    Price discrimination involves charging different prices to different customers based on risk or characteristics. Credit-score-based pricing is risk-based differentiation.  Why Other Options Are Incorrect • A: Same price for all. • C: High initial price strategy. • D: Low entry price. • E: Based purely on cost.  Banking Example: Lower interest rate for customers with higher CIBIL score.

    Practice Next
    More Basics of Marketing Management Questions

    Relevant for Exams:

    ask-question