Refer to the Scenario Below to Answer the Following Question(s)

question 61

Multiple Choice

Refer to the scenario below to answer the following question(s) .
Alden Manufacturing produces small kitchen appliances-blenders, hand mixers, and electric skillets-under the brand name First Generation. Alden attempts to target newlyweds and first-time home buyers with this brand.
Considering that most young households have limited financial resources, Alden attempts to engage in target costing. "In doing this," says Milt Alden, the co-founder of Alden Electronics, "we have better control over keeping price right in line with customers."
Alden manufactures a three-speed blender, its top seller, along with a five-speed blender. The hand mixers are manufactured in two variants-a small handheld mixer with two rotating beaters and another that comes with an optional stand and an attached mixing bowl. Alden's temperature-controlled skillets are manufactured in a single style with three color options.
"Our product offerings are narrower," Milt Alden added, "but our line workers know each product like the back of their hands. This allows us to produce superior products while holding our prices low.
-Which of these is NOT a way in which pricing can accomplish company objectives?

• A) set prices to attract new customers and retain existing customers
• B) raise prices to create excitement for a brand
• C) set prices low to hinder competition from entering the market
• D) price one product to help sales of other products in the company's line
• E) set price to keep the loyalty of resellers

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Definitions:

Potential Value

Represents the future benefits or value that an asset, investment, or action will potentially generate, not yet realized.

Innovation Process

A series of steps that begins with ideation and proceeds through to the implementation of new products, services, or processes.

Idea Creation

The process of generating, developing, and communicating new concepts or innovations.

Cause-Effect Relationship

A connection between events or conditions where one directly triggers the outcome of the other.