When Evaluating the Effectiveness of an Improved Manufacturing Process We

question 65

True/False

When evaluating the effectiveness of an improved manufacturing process we should evaluate the total sales and costs generated by this process.

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Definitions:

Price Lining

Setting the price of a line of products at a number of different specific pricing points.

Target Pricing

Consists of (1) estimating the price that ultimate consumers would be willing to pay for a product, (2) working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers, and then (3) deliberately adjusting the composition and features of the product to achieve the target price to consumers.

Cost-oriented

A pricing strategy where the price of a product or service is determined based on its production cost plus a markup.

Price Lining

A pricing strategy where a retailer offers a product line at several price points, catering to different customer segments and preferences.