Experience Curve Pricing Refers to

question 84

Multiple Choice

Experience curve pricing refers to

• A)the method of pricing where the price of a product often rises following the expansion of costs associated with the firm's producing and selling an increased volume of the product.
• B)the point at which profits double, then double again, as more consumers buy the product.
• C)a predictive pricing plan based upon the knowledge that the prices will fluctuate in a predictable pattern within a given industry based on the diffusion of innovation.
• D)a method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10 percent to 30 percent each time a firm's experience at producing and selling them doubles.
• E)a pricing strategy that uses price estimates based upon the consensus of the salesforce and the firm's top management team.

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Definitions:

Colour And Timbre

Attributes of sound and light; color refers to the visual property determined by wavelength, and timbre to the quality of a sound that distinguishes different types of sound production.

Frequency And Wavelength

Characteristics of waves, where frequency is the number of cycles per second, and wavelength is the distance between consecutive peaks of a wave.

Relative Size

A perceptual cue which allows the determination of the depth of an object when comparing its size to that of another object of known size.

Texture Gradient

A visual cue in perception that refers to the gradual change in the appearance of objects as they recede into the distance, indicating depth.