Tesla Motors "Going Green" Doesn't Have to Be Boring.The Tesla Roadster Sport

question 15

Multiple Choice

Tesla Motors
"Going green" doesn't have to be boring.The Tesla Roadster Sport is an electric car that goes from 0 to 60 in four seconds and drives more like a race car than an environmentally-friendly ride.But that level of performance will set you back $128,500.As of 2009,Silicon Valley-based Tesla Motors,Inc.was the only company offering highway-compatible electric cars.Most Roadster Sport buyers are car enthusiasts and are buying them for the "fun toy" aspect of having an electric car rather than for environmental reasons.
-Refer to Tesla Motors.Tesla set the price of the Roadster high because the company wanted to promote a high-quality image.What type of pricing does this represent?

• A) Prestige pricing
• B) Elite pricing
• C) Penetration pricing
• D) Quality pricing
• E) Complete pricing

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Definitions:

Credited

Recognized or accounted for, often referring to the addition of funds to an account.

Selling Price

The price at which a product or service is sold to the purchaser, often determined by the cost of production, market demand, and competition.

Cost

The amount of money required to purchase something or the expense associated with creating a product or service.

Mark-up

The extra sum included in the goods' selling price to cover both overhead expenses and profit.