Elmo Inc, a global conglomerate, designed the ElBrush, an electric toothbrush. Sensing market demand for the electric toothbrush, Elmo started with an ideal selling price of $3 based on customer value considerations and then targeted costs to ensure that the price was met. This exemplifies ________.
A) competition-based pricing
B) cost-plus pricing
C) target costing
D) everyday low pricing
E) high-low pricing
C
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Loyal brand buyers tend to change their buying patterns as a result of competitive promotions
Indicate whether the statement is true or false
Total variable costs change as the level of activity changes
Indicate whether the statement is true or false
Which of the following is an incorrect statement regarding the Federal Trademark Dilution Act of 1995?
A) Trademark dilution occurs through blurring. B) Trademark dilution occurs through tarnishment. C) Blurring occurs when someone uses a mark in a way that causes the famous mark to be linked with an inferior quality product or an unwholesome category of products. D) Blurring occurs when the distinctiveness of the famous mark is reduced by its association with a similar mark.
You determine that LMN common stock has an expected return of 24%. LMN has a Beta of 1.5. The
risk-free rate is 5%, and the market expected return is 15%. Which of the following is most likely to happen? A) You and other investors will sell LMN stock and its return will fall. B) You and other investors will buy up LMN stock and its return will rise. C) You and other investors will buy up LMN stock and its price will rise. D) You and other investors will sell LMN stock and its price will fall.