Following the experience curve concept, the initial price of a new product should be set rather low; as a matter of fact, it may be set below cost. Taking into account the popularity of this thesis, discuss the relevance of the skimming strategy.
What will be an ideal response?
The skimming strategy may be recommended, nonetheless, when the nature of demand is uncertain, when the company has expended large sums in R&D, or when the competition is expected to develop and market a similar product in the near future. Since price elasticity is often quite low at introduction, lower prices may have no noticeable effect. Markets may be developed by setting a high initial price, then gradually lowering the price to take advantage of experience. In addition, the process of starting with low prices and then attempting to raise them, if necessary, is more difficult than starting with high prices and then lowering them.
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What are the correct formulas for cells B2 and B3?
a) =B1/(1-B1) and =1/(1-B1)
b) =B1/(1+B1) and =1/(1+B1)
c) =B1/(1+B1)^2 and =1/(1+B1)^2
d) =B1/(1-B1)^2 and =1/(1-B1)^2
e) =B1/(B1-1) and =1/(B1-1)
In an ad hominem attack, you attack the person who disagrees with you rather than addressing the issue at stake
Indicate whether the statement is true or false.
When an international manager is considering where to do business, one of the first considerations is the size of the economy.
Answer the following statement true (T) or false (F)
Which of the following planned giving vehicles provides income that is guaranteed by the full faith and credit of the nonprofit organization or institution?
a. Charitable gift annuity b. Charitable remainder trust c. Life estate d. Donor-advised fund e. Lead trust