Refer to the scenario below to answer the following questions.
Pensonic Manufacturing produces small kitchen appliances-blenders, hand mixers, and electric skillets. Pensonic attempts to target newlyweds and first-time home buyers with this brand, under a market share leadership strategy.
In considering that most young households have limited financial resources, Pensonic has attempted to engage in target costing. "In doing this," Pensonic's manager Abdul Razak stated, "we have better control over keeping price right in line with customers."
Pensonic manufactures a three-speed blender, its top seller, and a five-speed blender. The hand mixers are manufactured in two styles-a small hand-held mixer with two rotating beaters and a similar style that comes with an optional stand and attached mixing bowl. Alden's temperature-controlled skillets are manufactured in one style with three color options.
"Our product offerings are narrower," Abdul Razak added, "but our line workers know each product like the back of their hands. This allows us to produce superior products while holding our prices low."
-Abdul Razak says that his line workers "know each product like the back of their hands," and that this knowledge helps the company keep its prices low.This indicates that Pensonic Manufacturing most likely uses which of the following strategies?
A) cost-plus pricing
B) value-added pricing
C) the experience curve
D) cost-based pricing
E) target profit pricing
Correct Answer:
Verified
Q87: A manufacturer is trying to determine its
Q88: _ pricing works only if that price
Q90: Refer to the scenario below to answer
Q91: When companies de-emphasize price and use other
Q91: If demand falls by 1 percent when
Q93: In _,sellers try to develop differentiated offers
Q94: Refer to the scenario below to answer
Q95: If Canon Camera Company follows a high-price,high-margin
Q96: If an individual store cannot charge more
Q97: Companies are fortunate to have demand that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents