Question

Naoki believes that food prices should be standardized and a restaurant should not charge more simply because it is a popular brand. He feels that $10 to $20 is a suitable price for a meal at a restaurant and all restaurants should follow the same pricing strategy. This is what is best known as his __________.A) pricing strategy.

B) expectation pricing.
C) known price range.
D) zone of acceptance.
E) appropriate acceptability range.

Answer 1

D) Zone of acceptance

Step-by-step explanation:

Zone of acceptance refers to the range of acceptable prices to a buyer to make a purchase decision.

The term conveys the upper and lower limits of the prices between which a buyer would consider the price as justified and willing to make a purchase.

In the given case, Naoki believes the range between $10 and $20 is would constitute the right range of prices for a meal at any restaurant. This means, it is acceptable to Naoki if any of the restaurants charge price in the mentioned range.

The range between $10 and $ 20 represents Naoki's zone of acceptance i.e he will be willing to purchase within the range.