For Segmented Pricing to Be Effective, Certain Conditions Should Be

question 60

Multiple Choice

For segmented pricing to be effective, certain conditions should be met. Which of the following is NOT one of the conditions necessary for effective segmented pricing?

• A) Costs of segmenting and matching the market should exceed the extra revenue obtained from the price.
• B) Competitors should not be able to undersell the firm in the segment being charged the higher price.
• C) Members of the segment paying the lower price should not be able to resell the product to segments paying the higher price.
• D) The market must be capable of being segmented on the basis of different degrees of demand or price sensitivity.
• E) all of the above

Grasp the concept of strategic fit between customer needs and supply chain responsiveness and efficiency.

Recognize the impact of transportation decisions on the supply chain's efficiency and structure.

Understand warehousing methodologies and their effects on supply chain performance.

Grasp the implications of capacity decisions on facility efficiency and supply chain flexibility.

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Definitions:

Net Benefit

The total benefits of a decision or action minus the total costs associated with that decision or action.

Marginal Cost

The expense associated with manufacturing an extra unit of a product.

Marginal Benefits

The extra advantages or utilitarian value derived from consuming an additional unit of a product or service, highlighting consumer preferences.

Net Benefit

The total positive effects of a decision or action minus the total costs associated with it.