Xunrui Communications Is an Upstart Maker of Inexpensive Smartphones for the Chinese

question 28

Multiple Choice

Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market. Xunrui purchases components and uses small assembly factories in Shenzhen, in southern China. These smartphones retail for about $65 in U.S. dollars, much less than the $250 to $600 for smartphones marketed by Apple or Samsung, the top two marketers of these items. Here, Xunrui Communications most likely is using which pricing strategy?

• A)penetration pricing
• B)cost-plus pricing
• C)target ROI pricing
• D)above-market pricing
• E)skimming pricing

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Definitions:

Laying Off

The temporary suspension or permanent termination of employment of an employee or group of employees for business reasons, such as economic downturns or organizational restructuring.

Peak Needs

Times when an organization requires additional resources or personnel to handle high volumes of work or special projects.

HR Practices

The strategies, policies, and methods implemented by the human resources department to manage and support an organization’s workforce effectively.

Skill Levels

The degree of competence or proficiency an individual has in a particular skill, often categorized by beginner, intermediate, and advanced.