When Firms Use Big Data to Determine How Responsive Different

question 41

Multiple Choice

When firms use big data to determine how responsive different groups of customers are to changes in prices, the firms are engaging in price discrimination.This pricing strategy is also called all of the following except

• A)arbitrage pricing.
• B)price optimization.
• C)dynamic pricing.
• D)yield management.

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Definitions:

Weighted-Average

A statistical method used to attribute different weights to data points or components based on their significance.

Cost Flow

Describes the manner in which costs move through a company's accounts, from the point of initial recording to their ultimate impact on financial statements.

Physical Flow

Physical flow pertains to the actual movement and processing of goods and materials through a production system or supply chain, often measured to assess efficiency and effectiveness.

Specific Invoice Method

A method used in accounting to record the cost of goods sold based on the specific cost of individual items.