Starbucks, Aveda, and BMW have been able to position themselves within their categories by combining quality, luxury, and premium prices with an intensely loyal customer base. These companies are employing a ________ strategy.
A. market-skimming
B. market-penetration
C. survival
D. market share maximization
E. product-quality leadership
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The first step in estimating demand is to ________.
A. analyze competitors' cost
B. select a pricing method
C. understand what affects price sensitivity
D. calculate fixed costs
E. decipher the experience curve
Consumers are less price sensitive when ________.
A. price is only a small part of the total cost spent on the product over its lifetime
B. they perceive the higher prices to be unjustified
C. they change their buying habits regularly
D. there are many substitutes and competitors in the market
E. they are buying high-cost items
If demand changes considerably, with a small change in price, the demand is said to be ________.
A. unit elastic
B. elastic
C. inelastic
D. marginal
E. strained
JJ pays overhead each month, including his company's bills for rent, heat, interest, and salaries, which are examples of ________ costs.
A. total
B. average
C. activity-based
D. variable
E. fixed
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