Morr Logistic Solutions Corporation has developed a new forklift-model QY-49-that has been designed to out perform a competitor's best-selling forklift. The competitor's product has a useful life of 10,000 hours of service, has operating costs that average $3.70 per hour, and sells for $109,000. In contrast, model QY-49 has a useful life of 40,000 hours of service and its operating cost is $2.10 per hour. Morr has not yet established a selling price for model QY-49.From a value-based pricing standpoint, what is QY-49's economic value to the customer over its 40,000 hour useful life?
A. $193,000
B. $500,000
C. $146,000
D. $391,000
Answer: B
You might also like to view...
Answer the following statements true (T) or false (F)
1. Nonverbal messages are often more convincing than verbal messages. 2. A candidate being turned down for a job primarily because he did not make eye contact shows how words are more important than actions. 3. Pushing the “like” button under an Instagram photo is an example of the complementing function of nonverbal communication. 4. We use nonverbal messages to manage the flow of verbal communication. 5. Saying “No” while shaking one’s head from side to side is an example of substituting.
Which of the following is an advantage of freestanding locations?
A. Light pedestrian traffic B. Unlimited trade area C. High pedestrian traffic D. High vehicular traffic E. Less expensive compared to shopping centers
Which of the following is not a consideration when making the decision to conduct marketing research?
A) the consumer's attitude toward research B) the costs versus the benefits of research C) the resources available to conduct the research D) the resources available to implement the research findings
The Vitamin Shoppe sells natural vitamins and supplements. Product prices are adjusted frequently to meet the needs of individual customers. For example, long-time customers receive discounts. This strategy is most likely an example of ________ pricing.
A) zone B) competition-based C) dynamic D) basing-point E) penetration