Odd pricing can backfire if misapplied, especially with respect to service industries.
Answer the following statement true (T) or false (F)
True
Studies indicate that at certain important price breaks-$9.99 versus $10.00, $99.95 versus $100.00, and so on-customers mentally process the price as significantly lower because of the reduced digit count in the price point. However, odd pricing can backfire if misapplied. For example, it seems acceptable for a bottle of Voss to be prestige priced at $12.95 instead of $13.00, but a physician, management consultant, or CPA wouldn't want to charge a client $195 instead of simply $200 for services rendered.
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Four hundred people were asked whether gun laws should be more stringent. Three hundred said "yes," and 100 said "no". The point estimate of the proportion in the population who will respond "no" is
A. 75. B. 0.25. C. 0.75. D. 0.50.
Ben, who runs a livestock breeding business, owes the Circle C Ranch $40,000. Ben agrees to pay the Circle C a percentage of his profits each month until the debt is paid. Because of this agreement, the Circle C is
A. Ben's creditor and partner. B. Ben's creditor only. C. Ben's partner only. D. neither Ben's creditor nor his partner.
The purpose of a management rights clause is to ensure that management:
A. Does not interfere with the rights of the union or rights of employees. B. Has the ability to file unfair labor practice charges against the union if the union violates their rights. C. Has unilateral control over wages, benefits, and hours of work. D. Maintains decision-making authority over traditional management functions.