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MKT 100
Helene Moore

MARKETING PRACTICE EXAM POST MIDTERM If I order a new MacBook laptop the company will charge me 1499 for a machine in black but only 1349 for an identically configured one in white What is this type of pricing called Answer IllegalPrice discrimination Staggered line pricing Family brand pricingWhy are loss leaders kept at the back of a grocery store Answer Because the store does not want to be positioned as a discounter To get customer to move past and hopefully purchase regularlypriced items To even out product distribution in the store Because the front of the store is usually only for impulse buysWhen Bubble McHenrys exciting line of Pez dispensers offered two lines of dispensers at 199 and 399 the best selling one was the 199 model When they introduced a DeluxoPez batterydriven at 799 the best selling model in the line became the 399 model not the 199 model What is the most plausible reason for this Answer The demand curve of the 199 model is moving left to right The demand curve of the 799 model is flattening The customer is having a perceptual change in what they perceive as value The price differentiation model is being enforced Transfer pricing is important to international companies A company would deal with transfer pricing by doing the following when they are shipping products from a low tax country to a high tax country You must identify both the right action and right reason Answer They would price the goods high to maximize the profits in the selling country and minimize them in the buying countryThey would price the goods low in the selling country to minimize the profits in the selling country andminimize the input costs in the buying countryThey would price the goods at cost in the selling country to eliminate any potential costs and changethe costs on the books when they arrived in the buying country to lower taxes there
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