A New Watch Manufacturer Would Like to Determine the Market

question 40

Multiple Choice

A new watch manufacturer would like to determine the market price of a new line of watches. How could the manufacturer most effectively determine the market price?

• A) Place several of the new watches on sale at a watch store and see which sells most quickly.
• B) Arrange to sell the watches in a number of diverse auctions.
• C) Set the price of one watch higher than another and see which sells the most quickly.
• D) Survey potential customers and retailers on what they think the price should be.
• E) Canvass executives from competing companies about what they think the price should be.

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Definitions:

Independently Owned

Refers to a business or entity that is owned by an individual or private group, not controlled by any larger company or conglomerate.

Manufacturing Sector

The segment of the economy concerned with the production of goods through the processing of raw materials and components into finished products.

Small Businesses

Refers to privately owned corporations, partnerships, or sole proprietorships that have fewer employees and lower annual revenue than a regular-sized business or corporation.