Xunrui Communications Is an Upstart Maker of Inexpensive Smartphones for the Chinese

question 89

Multiple Choice

Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market.Xunrui purchases the components for the items are then sent to small assembly factories in Shenzhen,which is located in southern China.These smartphones retail for about $65 in U.S.dollars,significantly less than the $250 to $600 for smartphones marketed by Apple or Samsung,the top two marketers of these items.Xunrui Communications MOST LIKELY is using which pricing strategy in this example?

• A)penetration pricing
• B)cost-plus pricing
• C)target ROI pricing
• D)above-market pricing
• E)skimming pricing

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Definitions:

Manufacturer

An entity or company that produces finished goods from raw materials in large quantities for distribution and sale.

Widespread Basis

A condition or situation that affects or applies to many individuals, regions, or contexts across a large area.

Shopping Products

Items for which the consumer compares several alternatives on criteria such as price, quality, or style.