Western Governors University (WGU) BUS2050 D077 Concepts in Marketing, Sales, and Customer Contact Practice Exam

The correct response indicates that price stabilization is not considered a main unethical pricing tactic. Price stabilization typically refers to efforts made by businesses or governments to maintain prices at a consistent level, particularly to prevent volatility in markets. This practice aims at benefiting consumers by ensuring predictable pricing and protecting them from sharp price fluctuations that can arise due to supply and demand changes.

In contrast, price discrimination involves charging different prices to different consumers for the same product or service based on willingness to pay, which can lead to unfair practices. Price gouging occurs when sellers increase prices to an exorbitant level during emergencies or crises, taking advantage of consumers' urgent needs. Predatory pricing involves setting prices extremely low with the intent to drive competitors out of the market, after which the company may raise prices once competition is eliminated. These practices are generally regarded as unethical due to their potential harm to competition and consumers, making them distinctly different from the concept of price stabilization.