The Maker of Oral-B Toothbrushes Is Introducing a New Electric

question 22

Multiple Choice

The maker of Oral-B toothbrushes is introducing a new electric plaque remover and expects considerable competition. What pricing strategy would be appropriate for this maker to choose?

• A) Price skimming
• B) Penetration pricing
• C) Odd-even pricing
• D) Prestige pricing
• E) Psychological pricing

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Definitions:

Adjusting Entries

At the close of a fiscal period, entries recorded to assign revenue and costs to the actual period of occurrence.

Advance Rent

Prepaid rent, which is an amount paid prior to the period to which it relates, often accounted for as a current asset until the period to which the rent applies.

Utility Bill

A bill sent by a utility company (electricity, gas, water, etc.) charging the customer for their usage of the service.

Insurance Salesman

A professional who specializes in selling insurance policies to individuals and businesses, advising on coverage options and terms.