UI Post-UTME Commerce 2025 (Model questions) Question 15

A supermarket uses the following pricing strategies: I. Loss leader pricing on staple foods II. Psychological pricing (e.g., ₦999 instead of ₦1,000) III. Cost-plus pricing for most products IV. Penetration pricing for new product lines. Which of the following are CORRECT about these strategies?
I. Loss leader reduces margin on that product but may increase overall store revenue
II. Psychological pricing exploits consumer perception
III. Cost-plus is the most customer-orientated pricing method
IV. Penetration pricing involves setting a high initial price

1. A.I, II and III only
2. B.I and II only
3. C.III and IV only
4. D.All of the above