Dan Is Especially Price Sensitive

question 97

Multiple Choice

Dan is especially price sensitive.He has been known to line up on "Black Friday" (the day after Thanksgiving) at 4 a.m.in order to be among the first to buy sale items.Dan would likely respond to a __________ pricing strategy.

• A) high / low
• B) premium
• C) slotting allowance
• D) horizontal flattening
• E) vertical triangulation

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Definitions:

Translation Risk

The gain or loss on the value of assets and liabilities held in another country that results from variation in exchange rates. Generally relatively meaningless as long as the foreign operation is not liquidated or sold. Therefore not generally taxable.

Consolidated Income Statements

A financial statement that aggregates the income statements of a parent company and its subsidiaries to show the total earnings and financial performance of the entire group.

Protectionism Law

Legislation intended to protect domestic industries from foreign competition through tariffs, quotas, or other restrictions.

Importation

The process of bringing goods or services into a country from abroad for the purpose of selling.