A New Company Is in the Process of Evaluating Its

question 54

Multiple Choice

A new company is in the process of evaluating its customer service.The company offers two types of sales: (1) Internet sales and (2) store sales.The marketing research manager believes that the Internet sales are more than 10 percent higher than store sales.The alternative hypothesis for this problem would be stated as

• A) P_Internet − P_store > 0.
• B) P_Internet − P_store < 0.
• C) P_Internet − P_store ³ 0.
• D) P_Internet − P_store £ .10.
• E) P_Internet − P_store > .10.

Recognize the importance of customary pricing in certain markets.

Comprehend how businesses utilize pricing to achieve specific financial objectives.

Understand the concept of price setting in response to market or competitor actions.

Grasp how companies set prices to achieve a target profit or sales volume.

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Definitions:

Profit Maximizing

The procedure a business uses to ascertain the most profitable price and volume of output.

Monopolist

A single seller in a market, who has significant control over the price and supply of a specific good or service.

Marginal Cost

The increase in total cost resulting from producing one additional unit of a good or service.

Price Discriminate

A pricing strategy where a seller charges different prices for the same product or service to different customers, based not on costs, but on willingness to pay.