MAR3023_Quiz_08 - 1 Stacie took a study break to watch T.V...

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Unformatted text preview: 1. Stacie took a study break to watch T.V. As she was flipping through the channels, the QVC channel caught her eye. Billy Blanks along with 15 others were demonstrating workout routines while one person gave a testimonial about how the TaeBo workout video tapes had changed her life. QVC advertised the TaeBo videos for only $29.99, but also showed $100 crossed out with a red slash, stating that the tapes were a "$100 value". What is the "$100 value" called, and what is its purpose? Stud ent Resp onse Valu e Corr ect Ans wer Feed back A. Refe renc e Price ; to estab lish the perc eive d valu e of the prod uct. 100 % B. Valu e Price ; to offer the custo mer General Feedback: Lecture page 109¸ The “$100 value” is an example of an external reference price that QVC is trying to convey to the consumers. They are trying to convince the consumer that the tapes are a good value and a bargain by setting a high reference price. If the consumer associates $100 as the value of the video tapes, the value of the tapes at a price of $29.99 will be even higher Score: 1/1 2. Which of the following is NOT a problem associated with the Cost-Based and Profit-Based pricing strategies? Stud ent Res pons e Val ue Cor rect Ans wer Fee dba ck A. Thes e strat egie s do not take into cons idera tion incre ases in prod uctio n effic ienc y that woul d creat e econ omie s of scale General Feedback: Lecture page 106 A) The failure to account for economies of scale is a problem associated with these pricing strategies. The variable cost may be reduced as more and more units are produced, so the unit cost of production usually drops as the firm’s output increases. B) Cost-Based and Profit-Based pricing strategies do not include competitive factors such as competitors’ prices. C) This is not a problem. These strategies do take into consideration the cost of goods in relation to profits. D) Both these strategies ignore demand factors. They have an internal focus so there is no reflection of the external market factors like demand. E) This is a problem with these strategies. They only consider internal goals and costs. External, market-related variables are not considered in these pricing approaches. Score: 0/1 3. Emily recently decided that she wanted to purchase a new Dell Laptop for the upcoming semester. After speaking to many people about computers over the past few years, she had a good idea about what kind of processor and how much memory she wanted. She believed that the laptop would cost around $900.00. After building her computer online at www.Dell.com, she was surprised to learn that her computer normally would cost $1500.00. However, if she agrees to buy it today, Dell will sell it to her for $1200.00. What is occurring in the passage?...
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This note was uploaded on 12/10/2010 for the course MAR 3023 taught by Professor Lutz during the Fall '08 term at University of Florida.

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MAR3023_Quiz_08 - 1 Stacie took a study break to watch T.V...

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