When apple inc originally introduced its iphone it

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12. When Apple Inc. originally introduced its iPhone it was priced at what many believed to be about as high as the market would allow. Within weeks Apple lowered the price of the iPhone. It appears that Apple Inc. entered the market with a _____ approach to pricing the iPhone. a. market share pricing b. profit maximization c. demand-oriented d. sales maximization e. status quo pricing ANS: B Profit maximization means setting prices so that total revenue is as large as possible relative to total costs. PTS: 1 REF: 296 OBJ: 19-2 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Pricing 13. When Insight Research Associates quotes a marketing research project management will first estimate the cost to conduct the research and produce and deliver the final client report. The next step in de- termining the price is to add 30% to that cost estimate. This becomes the price estimate given to the potential research client. This suggests that Insight Research Associates uses a(n) _____ pricing ob- jective. PTS: 1 REF: 296-297 OBJ: 19-2 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Pricing 14. Thompson Pool is known for quality pool installations, excellent customer service, and reasonable prices. If you want to have a Thompson pool you will have to wait about six months due to demand for their product. While Thompson could probably price their product higher, given the demand, they don’t. Instead, they set price so that they earn a reasonable level of profits. This company seems to base its pricing policy on:
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PTS: 1 REF: 297 OBJ: 19-2 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Pricing 15. _____ is equal to net profit after taxes divided by total assets. PTS: 1 REF: 297 OBJ: 19-2 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing
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  • Spring '10
  • Patterson
  • Supply And Demand, AACSB Reflective Thinking, TB&E Model Pricing

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