Using a Price Lining Strategy,a Marketer Will

question 297

Multiple Choice

using a price lining strategy,a marketer will

• A) set the price of a line of products at a number of different specific pricing points.
• B) set the price slightly higher than necessary to protect against losses from environmental factors.
• C) adjust the price of a product so it is "in line" with the price of its largest competitor.
• D) set a low initial price on a new product to appeal immediately to the mass market.
• E) set a market price for product or product class based on a subjective feel for the competitors' price or market price.

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Definitions:

Income Tax Expense

The amount of money a company is obligated to pay in income taxes for a given fiscal period.

Net Income

The amount of earnings remaining after all expenses, taxes, and dividends have been deducted from total revenue, often referred to as net earnings or net profit.

LIFO Cost Flow

An inventory valuation method that assumes the last items placed into inventory are the first ones to be sold.

Cost of Goods Sold

The immediate expenses linked to the creation of products a company sells, encompassing costs for materials and labor.