The Price for Nintendo's Wii Video Game Console Was Likely

question 277

Multiple Choice

The price for Nintendo's Wii video game console was likely insufficient to cover its fixed and variable costs. However, the price of its video games was set high enough to cover its video game console's loss and deliver a handsome profit for all Nintendo products. This example illustrates Nintendo's use of

• A) bundle pricing.
• B) product-line pricing.
• C) price lining.
• D) customary pricing.
• E) loss-leader pricing.

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Definitions:

Retailer

A business or person that sells goods directly to consumers, as the final link in the supply chain from manufacturers to end buyers.

Promote Product

Marketing activities aimed at increasing awareness and interest in a product, ultimately to boost sales.

Sales Presentation

A structured pitch or demonstration by a salesperson to persuade a prospect or client to buy a product or service.

Suggest Purchase Order

A recommendation given to a client or customer about the quantity and type of goods to be bought, taking into account past purchases and future needs.