When the Swiss Watchmaker TAG Heuer Quadruped the Average Price

question 119

Multiple Choice

When the Swiss watchmaker TAG Heuer quadruped the average price of its watches, its sales volume jumped sevenfold. The likely cause of this volume increase is that

• A) the watch market is highly conservative.
• B) economies of scale in production would be substantial.
• C) retailers are not willing to carry new brands of watches in this category.
• D) once the initial price is set, it is nearly impossible to lower the price without alienating early buyers.
• E) the watch category frequently uses prestige pricing, wherein lower prices may result in lower sales.

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The process by which individuals act and react in relation to others in a social setting.

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The legal document through which a person specifies the method to be applied in the management and distribution of their estate after their death.

Tight Societies

Societies characterized by strict social norms and heavy penalties for deviating from those norms, which lead to a high level of conformity among its members.

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