Question : Case Study:
ABC Electronics sets its prices based on market demand, competitor pricing, and production costs. What pricing strategy does this case exemplify?
Option 1: Psychological Pricing
Option 2: Penetration Pricing
Option 3: Skimming Pricing
Option 4: Cost-Plus Pricing
Correct Answer: Cost-Plus Pricing
Solution : The correct answer is (d) Cost-Plus Pricing.
ABC Electronics sets its prices based on market demand, competitor pricing, and production costs. Cost-Plus Pricing involves calculating the total cost to produce a product or service and then adding a markup (a certain percentage or amount) to cover desired profit. In this scenario, ABC Electronics considers production costs (the "cost" part of cost-plus pricing), along with market demand and competitor pricing, to determine the appropriate pricing for their electronic products.
ABC Electronics chooses to distribute its high-end gadgets only through a limited number of specialized electronics stores. What distribution strategy is employed by ABC Electronics?
ABC Electronics is known for creating products that cater to customers' evolving needs and preferences. They constantly analyze market trends and implement innovative marketing strategies. Which marketing concept does ABC Electronics adhere to?
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