Blauvelt Electronics Corporation Has Developed a New Instrument-Model GZ-29-That Has

question 82

Multiple Choice

Blauvelt Electronics Corporation has developed a new instrument-model GZ-29-that has been designed to outperform a competitor's best-selling instrument. Model GZ-29 has a useful life of 30,000 hours of service and its operating cost is $3.20 per hour.In contrast, the competitor's product has a useful life of 10,000 hours of service and has operating costs that average $5.60 per hour. The competitor's instrument sells for $149,000. Blauvelt has not yet established a selling price for model GZ-29.From a value-based pricing standpoint what range of possible prices should Blauvelt consider when setting a price for GZ-29?

• A) $245,000 ≤ Value-based price ≤ $370,000
• B) $370,000 ≤ Value-based price ≤ $519,000
• C) $149,000 ≤ Value-based price ≤ $519,000
• D) $149,000 ≤ Value-based price ≤ $245,000

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Cognitive Dissonance Theory

A theory suggesting that individuals experience discomfort (dissonance) when they hold conflicting beliefs, attitudes, or values and are motivated to reduce this discomfort.

Boring Task

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