In an Organization That Has a Decentralized Organizational Philosophy, Decision-Making

question 12

Multiple Choice

In an organization that has a decentralized organizational philosophy, decision-making authority rests in levels closer to the point of service rather than in the executive levels. Benefits of a decentralized organizational philosophy include (select all that apply) :

• A) encouraging more input.
• B) supporting greater innovation.
• C) facilitating faster response times.
• D) permitting a narrower span of control.
• E) allowing for more levels of management.

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Definitions:

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.

Odd-even Pricing

A pricing strategy that sets prices just below a round number (e.g., $19.99 instead of $20) to make the price seem lower than it actually is.