Companies Use a "Price Premium" to Assess Whether Their Products

question 78

Multiple Choice

Companies use a "price premium" to assess whether their products and brands are priced above,at,or below the market.More specifically,a price premium is the percentage by which the actual price charged for a specific brand exceeds or falls short of a benchmark established for a similar product or basket of products.This price premium equals:

• A)unit volume market share for a brand divided by dollar sales market share for a brand,minus 1.
• B)dollar sales market share for a brand divided by unit volume market share for a brand,plus 1.
• C)dollar sales market share for a brand divided by unit volume market share for a brand,minus 1.
• D)dollar sales market share for a brand,divided by unit volume market share for a brand,plus 1.
• E)dollar sales market share for a brand,divided by unit volume market share for a brand,minus the number of competitors against which a brand is being measured.

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Definitions:

FR(%)

Fill Rate (FR%) is a metric that measures the percentage of customer demand that is met through immediate stock availability, without backorders or lost sales.

Normal Distribution

A statistical distribution where data is symmetrically distributed around the mean, commonly represented as a bell-shaped curve.

MTBF Distribution

Mean Time Between Failure Distribution; a statistical representation that describes the expected time between failures for a system or component.

Preventive Maintenance

Scheduled maintenance activities carried out on equipment to prevent unexpected failures or malfunctions.