Describe the four methods of implementing differential pricing
What will be an ideal response?
a. Direct price discrimination – maximizes products' profits by charging each market segment the price that maximizes profits from that segment because of different price elasticities of demand.
b. Second-market discounting – with this policy, you sell the extra production at a discount to a market separate from the main market.
c. Periodic discounting – price varies over time. It is appropriate when some customers are willing to pay a higher price to have the product or service during a particular time period.
d. Flat-rate versus variable-rate pricing – allows customers to choose the option that best suits their level of usage.
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Marketing expenses for which among the following products are more likely to vary widely
month after month? A) children's toys B) timber C) industrial spares D) iron ore
If a company owns 90 percent or more of the outstanding shares of each class of a subsidiary company's stock, a merger may be effected with approval of the parent's board of directors alone, without resort to shareholders. This is called a:
A) parent-sub merger. B) board merger. C) short-cut merger. D) short-form merger.
If an announcement by a firm causes the price of that firm's stock to suddenly change, that price change will most likely be driven by:
A) the expected part of the announcement. B) market inefficiency. C) the unexpected part of the announcement. D) systematic risk. E) expectations of a revised announcement in the near term.
The GAO standards of reporting for governmental financial audits incorporate the AICPA standards of reporting and prescribe supplemental standards to satisfy the unique needs of governmental audits. Which of the following is a supplemental reporting standard for audits in accordance with Government Auditing Standards?
A. Material indications of illegal acts should be reported in a document with distribution restricted to senior officials of the entity audited. B. Instances of abuse, fraud, mismanagement, and waste should be reported to the organization with legal oversight authority over the entity audited. C. All privileged and confidential information discovered should be reported to the senior officials of the organization that arranged for the audit. D. Reports on compliance with laws and regulations and internal control.