Diane owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 less than Diane. Diane decides to lower her price and match CC's Bakery prices. What type of pricing strategy is Diane implementing?
A. sales-oriented pricing
B. internal pricing
C. competitor-oriented pricing
D. profit-oriented pricing
E. customer-oriented pricing
Answer: C
You might also like to view...
What are purchase panels and media panels? Develop examples of marketing situations where you would use each. Be sure to explain the type of information you would collect and the makeup of the panel respondents
What will be an ideal response?
What is the main criticism of expanded diversity definitions which include all differences?
a. By being so broad they do not provide specific detail b. The definitional meaning continuously changes c. Even expanded definitions can not include all categories of distinction d. They reduce diversity to benign differences diluting the serious consequences of discrimination
Read the scenario. As you read, consider your position in relation to the ethical and legal forces at work, and then answer the question. You work for Holstead Communications, a midsized digital phone, cable, and Internet service provider in rural New Mexico. Your company has always provided customers with two billing options: paperless or traditional. As a cost-saving measure, the company has
decided to discontinue its traditional billing option. All customers who choose the traditional billing option will be charged a yearly billing fee of $25. This fee will offset printing and mailing costs of $600,000 annually. The CFO and legal team have determined that Holstead is not legally obligated to announce the fee increase to its customers. Therefore, to avoid customer loss, negative press, and a potential decrease in revenue, Holstead will not announce the new fee. Instead, customers with traditional billing options will see a $2.08 increase on their monthly bills. As a customer service representative, you understand the difficulties that the additional fee will pose for some customers. For example, you know that some of Holstead's older customers and customers who don't speak English won't be able to decipher the additional fee on their bills. You are uncomfortable with the choice that top management has made regarding billing fees. Despite your concerns, you know you will be up for promotion next month, and you have decided not to jeopardize your chances for advancement. This company's decision to add a hidden fee is _________. A. legal, yet unethical B. illegal, yet ethical C. legal and ethical Fill in the blank(s) with correct word
Jack Spratt makes candlesticks. His fixed cost is $5,000, variable cost is $3.50, and selling price, $8.50. To what value must he reduce his variable cost if he wants a break-even point of 900 units?
What will be an ideal response?