Xunrui Communications Is an Upstart Maker of Inexpensive Smartphones for the Chinese

question 259

Multiple Choice

Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market. Xunrui purchases the components and assembles the phones in Shenzhen, located in southern China. These smartphones retail for about $65, significantly less than the $250 to $800 for smartphones marketed by Apple or Samsung, the top providers. Xunrui Communications most likely is using which pricing strategy in this example?

• A) penetration pricing
• B) cost-plus pricing
• C) target ROI pricing
• D) above-market pricing
• E) skimming pricing

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Definitions:

Mathematics

Mathematics is the abstract science of number, quantity, and space, either as abstract concepts (pure mathematics) or as applied to other disciplines such as physics and engineering (applied mathematics).

Literacy

The ability to read, write, and understand text, as well as to engage with and interpret written materials.

Reliability Estimates

Measures or indicators of the consistency or stability of a test, scale, or measurement instrument over time.

Standard Deviation

A measure of variability that describes how scores vary around the mean. In all normal curves the percentage of scores between standard deviation units are the same; hence, the standard deviation combined with the mean can tell us a great deal about a set of test scores.