What activities occur once the marketing manager has established pricing goals? Why are these activities important?
What will be an ideal response?
The marketing manager must first estimate quantity demand levels and elasticity of demand, which allows for an estimate of revenues at a variety of price levels. Next, corresponding costs should be determined for each price. Then the manager can estimate the amount of profit and market share that can be earned at each possible price. Alternative pricing policies can be examined in terms of revenues, costs, and profits. This information becomes the core of the price policy by determining which price can best meet the firm's pricing goals.
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Activity analysis is one of the first stages in implementing activity-based cost management (ABCM). Which of the following steps in activity analysis is usually performed first?
A. Continuously improve the efficiency of all value-added activities and develop plans to eliminate or reduce nonvalue-added ones. B. Classify all activities as value-added or nonvalue-added. C. Chart, from start to finish, the activities used to complete the product or service. D. Identify the process objectives that are defined by what the customer wants or expects from the process.
Another term for “belief perseverance” is ______.
A. belief updating B. rehearsal C. primacy effect D. imaging
Which of the following is an industry in China where violations of intellectual property rights are still prevalent?
A. electronics industry B. food retailing industry C. book publishing industry D. furniture making industry
Explain the accounting for employee stock options