When Using a Price Lining Strategy,a Marketer Will

question 413

Multiple Choice

When using a price lining strategy,a marketer will

• A)set the price of a line of products at a number of different specific pricing points.
• B)set price slightly higher than necessary to protect against losses resulting from adverse environmental forces.
• C)adjust the price of a product so it is "in line" with the price of its largest competitor.
• D)set a low initial price on a new product to appeal immediately to the mass market.
• E)set a market price for product or product class based on a subjective feel for the competitors' price or market price as the benchmark.

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Definitions:

Unrealized Profits

Profits that have been earned but not yet realized through a transaction, often related to investments that have increased in value but have not been sold.

Economic Activities

Actions that involve the production, distribution, and consumption of goods and services in an economy.

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Data related to the financial transactions and status of an individual, business, or organization, used for reporting and decision-making purposes.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue, indicating the company’s financial performance.