Swatch Surveyed the Market and Identified an Unserved Segment of Watch

question 11

Multiple Choice

Swatch surveyed the market and identified an unserved segment of watch buyers.Using these results,they created a watch at a price consumers were willing to pay.The unorthodox order of this marketing mix decision is an example of ________.

• A)competition-based pricing
• B)cost-plus pricing
• C)target costing
• D)value pricing
• E)penetration pricing

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Definitions:

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks, which provide voting rights and potential dividends.

Short-Term Investment

Financial assets that are expected to be converted into cash or sold within a year.

Monetary Assets

Monetary assets are financial assets that are cash or can be quickly converted into a known amount of cash with minimal risk of changes in value.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.