In a bid to attract more customers in a market that has several competitors, Barrymore's Bakery slashed the prices of all its products by 50 percent. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using?
A) market-skimming pricing
B) market-penetration pricing
C) captive-product pricing
D) cash discount pricing
E) by-product pricing
B
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Alice is shopping for a new car, and she has narrowed her decision to a Honda Accord and a Toyota Camry. Both sedans have similar features and prices, but Alice decides to purchase the Honda based on her intuition
Which of the following situations would most likely cause Alice to experience postpurchase dissonance? A) The price of the Honda Accord increases by a huge margin. B) The price of the Toyota Camry falls due to an increase in demand. C) The Honda Accord meets all her expectations and satisfies her needs. D) The Toyota Camry experiences technical failures that lead to a recall. E) The maintenance costs of the Honda Accord decrease significantly over time.
Alphonse Company manufactures staplers. The budgeted sales price is $14.00 per stapler, the variable costs are $3.00 per stapler, and budgeted fixed costs are $10,000. What is the budgeted operating income for 4300 staplers?
A) $47,300 B) $37,300 C) $60,200 D) $12,900
In order for revenue to be recognized, the seller's price to the buyer must be fixed or determinable
Indicate whether the statement is true or false
Jessica sells exercise equipment to health clubs and similar facilities. During a sales call, her prospect says, "Our clients are quite happy with the results they are getting from the use of our current equipment." This is an example of a ________ objection.
A. stalling B. dodging C. process D. hidden E. product