Elmo Inc, a Global Conglomerate, Designed the ElBrush, an Electric Toothbrush

question 73

Multiple Choice

Elmo Inc., a global conglomerate, designed the ElBrush, an electric toothbrush. Sensing market demand for the electric toothbrush, Elmo started with an ideal selling price of $3 based on customer value considerations and then targeted costs to ensure that the price was met. This exemplifies ________.

• A) competition-based pricing
• B) cost-plus pricing
• C) target costing
• D) everyday low pricing
• E) high-low pricing

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Definitions:

SPIN Approach

A sales technique that involves asking Situation, Problem, Implication, and Need-payoff questions to understand a customer's needs and propose solutions.

Prospect's Approval

The process by which a potential buyer signals their agreement or interest in moving forward with a purchase.

Remain Silent

The act of refraining from speaking, often strategically used in negotiations or to prompt another to speak.

SPIN Approach

A selling technique based on Situation, Problem, Implication, and Need-payoff questions to understand customer needs and propose solutions.