Question

joachim purchased an alarm system for his car during a promotion. he considered the price during the promotion to be very attractive. however, he later learned that the firm set an artificially high reference price for the alarm system just before the promotion to make the advertised sale price more attractive. joachim just experienced

price discrimination.

price - fixing.

deceptive pricing.

bait and switch.

predatory pricing.

Explanation:

Deceptive pricing occurs when a firm sets an artificially high reference price to make a sale - price seem more attractive. Price - discrimination involves charging different prices to different customers based on their willingness to pay. Price - fixing is an agreement between competitors to set prices. Bait - and - switch is advertising a product at a low price and then trying to sell a different, more expensive product. Predatory pricing is setting low prices to drive competitors out of business. In this case, the firm set an artificially high reference price to make the promotion price seem better, which is deceptive pricing.

Answer:

deceptive pricing