The Pricing Policy Used by Middleton Industries,manufacturer of Renaissance Charms

question 123

Multiple Choice

The pricing policy used by Middleton Industries,manufacturer of Renaissance charms for bracelets and necklaces,is to set prices so the its retail prices are as high as the market will tolerate.Additionally,Middleton strives to keep its costs at an industry low by using silver and gold overlays over charms made of cheap base metal.This is an example of a _____ policy

• A) market share pricing
• B) profit maximization
• C) demand-oriented
• D) sales maximization
• E) status quo pricing

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Definitions:

Regression

A statistical method for predicting the value of a dependent variable based on the value(s) of one or more independent variables, or a defense mechanism leading to reversion to an earlier stage of development.

Psychosexual Stage

A concept in Freudian psychology that describes phases during childhood where the libido is focused on different body parts.

Defense Mechanism

Psychological strategies developed by the unconscious mind to protect an individual from anxiety or unacceptable thoughts and feelings.

Fixation

In psychoanalytic theory, an obsessive interest or attachment to a developmental phase or aspect of personal interaction.