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      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.

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