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

Info icon This preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
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?
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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
Image of page 2
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?
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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
Image of page 4
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? I. external reference price II. sticker shock III. internal reference price IV. participative bargaining
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Stud ent Res pons e Val ue Cor rect Ans wer Fee dba ck A.
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern