At the end of the summer howard nursery reduced the

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21. At the end of the summer, Howard Nursery reduced the price on all of its plants, fertilizer, and potting soil by 50 percent in order to liquidate this inventory. What type of pricing strategy is being used in this example? a. supply oriented b. sales maximization c. target return on investment d. satisfactory profit e. profit maximization ANS: B Sales maximization ignores profit and competition for the purpose of raising cash. PTS: 1 REF: 298 OBJ: 19-2 TYPE: App
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TOP: AACSB Reflective Thinking | TB&E Model Pricing 22. Dixie Furniture Company has recently moved to a new, larger location. At this new location, it has been unable to attract sufficient customers. Its owner does not have the cash to pay the current loan in- stallment due on the building and inventory so he decided to reduce all merchandise prices by at least 50 percent for a weekend sale to earn enough to make his loan payment. His pricing objective can be classified as: PTS: 1 REF: 298 OBJ: 19-2 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Pricing 23. As a short-term pricing objective, _____ can be effectively used on a temporary basis to sell off ex- cessive inventory. PTS: 1 REF: 298 OBJ: 19-2 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 24. If a company's pricing objective is to meet the competition or to maintain existing prices, it is using _____ pricing. PTS: 1 REF: 298 OBJ: 19-2 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 25. When Delta Airlines raises or lowers its prices on its Atlanta to Chicago route other airlines tend to make the same changes in their pricing. This is an example of _____ pricing. a. status quo b. target return c. market share d. predatory e. cost-plus
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ANS: A Status quo pricing is best described as meeting the competition. PTS: 1 REF: 298 OBJ: 19-2 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Pricing
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