The Marketing Manager of Icruise

question 95

Multiple Choice

The marketing manager of Icruise.com (a travel Web site targeted to consumers who want a luxury vacation) finds that the firm can gain market share and become the industry leader if it slashes prices by 50 percent during the month of December.However,the VP of finance is committed to reporting a 25 percent return on investment at all times.This conflict illustrates:

• A) a need to eliminate low-profit products.
• B) a lack of corporate concentration on the marketing concept.
• C) how pricing operates in a mature marketplace.
• D) the need for trade-offs in pricing objectives.
• E) how target markets can be ignored.

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Definitions:

Payroll Tax Expense

Represents the taxes that employers are required to pay based on the wages and salaries of their employees; this includes taxes like Social Security and Medicare in the US.

State Unemployment Taxes

Taxes paid by employers to fund the state's unemployment insurance program, providing financial assistance to workers who have lost their jobs.

Employee Payroll Deductions

Amounts withheld from an employee's salary for taxes, insurance, and other mandatory or voluntary contributions.

Federal Unemployment Taxes

Taxes paid by employers to the federal government to fund unemployment benefits and job service programs.