When Hallmark Cards Introduced a Line of 99-Cent Cards (About

question 13

Multiple Choice

When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold) , the greeting card company was trying to appeal to a mass market that was price-sensitive. Hallmark was using a(n) __________ pricing strategy.

• A)prestige
• B)skimming
• C)target ROI
• D)penetration
• E)experience-curve

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Definitions:

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or real yield on an investment.

Nominal Wages

The amount of money paid to workers before adjusting for inflation, reflecting the face value of earnings irrespective of purchasing power.

Annual Rate

A percentage that represents the growth, yield, or return of an investment or account over a one-year period.

Real Wages

The purchasing power of wages, quantifying the amount of goods and services that can be bought, accounting for inflation.