If Nabisco Wants to Quickly Gain a Large Market Share

question 158

Multiple Choice

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use

• A) penetration pricing.
• B) random discounting.
• C) captive pricing.
• D) price skimming.
• E) everyday low prices.

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Definitions:

Resource Driver

A factor that causes a change in the consumption of resources in the production of a product or service.

Activity Management

The process of planning, controlling, and monitoring resources and tasks to achieve specific business goals.

Overhead Activities

Tasks or operations that incur indirect costs, which are not directly attributable to a specific product or service.

Activity Cost

The cost associated with a specific activity or process in the production or delivery of goods and services.