Godiva, a Maker of Expensive European Chocolates, Does Not Mention

question 87

Multiple Choice

Godiva, a maker of expensive European chocolates, does not mention price in its magazine advertising. Instead, the ad copy mentions the quality of the ingredients, the fine packaging, and the luxurious boutiques where Godiva chocolates are sold. Godiva seems to be pursuing a pricing objective of:

• A) Meeting competition.
• B) Nonprice competition.
• C) Target return.
• D) Growth in market share.
• E) None of these is a good answer.

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Definitions:

Frederic Bastiat

A French economist and author known for his theories on economics and his advocacy of free markets and limited government.

Economic Theory

A set of principles and concepts that helps in the explanation and prediction of economic phenomena.

International Trade

The exchange of goods and services between countries, allowing for greater variety and availability of resources and products.

Domestic Consumption

The total amount of goods and services consumed by the residents of a country.