What is high-low pricing?
What will be an ideal response?
High-low pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.
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Honig Corporation had the following shares of stock outstanding on December 31, 2010: Common stock, $50 par value, 100,000 shares outstanding Preferred stock, 8 percent, $100 par value, cumulative, 10,000 shares outstanding Dividends were in arrears for 2008 and 2009 . On December 31, 2010, total cash dividends of $400,000 were declared. The total amounts payable to preferred stockholders and
common stockholders, respectively, are a. $200,000 and $200,000. b. $160,000 and $240,000. c. $240,000 and $160,000. d. $80,000 and $320,000.
In high context cultures, relationships tend to be
A. pragmatic. B. short term. C. medium term, except for family. D. long term.
Barbara, an antique dealer, intentionally misrepresents the value of an antique chest of drawers, as $6,000 when she has reason to know the value is considerably less. Margaret agrees to buy it for $5,500 . It is worth $2,500 . In a state that uses the "out-of-pocket" rule, Margaret's damage award would be:
a. $3,500. b. $3,000. c. $500. d. $2,500.
Scenario 16.2 Use the following to answer the questions. The State Farm Group includes several companies. Probably the most well-known company in the group is the State Farm Insurance company, the largest auto and home insurer in the United States. State Farm Insurance provides protection for approximately 78 million policies on auto, fire, life, and health services. It is also a leading insurer of homes and autos in Canada. Another company in the State Farm group is the State Farm Bank, which was opened in 2000, beginning State Farm's entry into the financial services field. However, the State Farm Bank is not a traditional bank, in that it has no branch offices and its services are provided through State Farm agents, a call center, the mail, and on the Internet. It currently serves
over 1.9 million bank accounts. Refer to Scenario 16.2. If State Farm Bank decided that it wanted to increase its number of bank customers by 10% in the coming year, it would most likely use the ____ approach to advertising allocation. A. arbitrary B. competition-matching C. objective-and-task D. percent-of-sales E. percent-of-customer