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LockIt, a manufacturer of electronic safes, accounts for 5% of the safes sold in the U.S. LockIt’s current business strategy is aimed at selling beter-quality products at higher prices than compettors. The higher prices make LockIt one of the leaders in terms of revenue earned. Having satssed inital objectves of earning a certain ROI, LockIt sets a target of accountng for 25% of the units sold during the next snancial year. To further this goal, LockIt introduces a line of lower-priced safes that are priced below similar competng products. LockIt’s new pricing strategy is _____.
1. sales oriented
2. prost oriented
3. customer oriented
4. supplier oriented
5. compettor oriented
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Carnival Cruise Lines increased the price of its seven-day cruise package by 20 percent recently. If demand for its cruises is negatvely elastc, which of the following is the likely outcome of the increase in price?
1. The company will see an increase in customer bookings.
2. The company’s prost will decrease though its revenue will increase.
3. The company will see a decrease in total revenue.
4. There will be no change in the number of cruises booked.
5. The company’s total revenue will increase.
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A srm sells 20,000 units of a partcular product at a price of $50 per unit. The company spends $30 per unit in raw materials and labor charges. What are company’s sxed costs if it made a prost of $100,000?
A Macy’s manager designs the casual clothing department such that one of Macy’s private label pairs of jeans, priced at $24.99, is positoned next to a natonal brand of jeans, such as Levis, priced at $39.99. What is the manager atemptng to accomplish?
1. Everyday low prices strategy
2. Odd-even pricing strategy
3. Prestge pricing strategy
4. Special-event pricing strategy
5. Reference pricing strategy