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:

Cross-functional Teams

Teams made up of individuals from diverse departments or fields of specialty, collaborating to achieve a shared objective.

Product Concept Statement

A document that outlines the purpose, target market, and benefits of a product, serving as a blueprint for its development.

Vitality Index

A measure of innovation that expresses the percentage of sales from new products or services introduced over a certain period.

Total Sales Revenue

The entire amount of income generated by the sale of goods or services related to the company's primary operations.