LSUS Chen- MBA 706 Module 4 Questions and Answers Accurate

LSUS Chen- MBA 706 Module 4 Questions and Answers Accurate
Question : Cost reductions
Correct answer: Products are modified to provide similar
performance but at a lower cost: ex: iphone XS vs Iphone XR
Question : Price
Correct answer: Pricing decisions are hard to make due to the
complexity of interaction among consumers, competitors, and
the distribution network: and decisions are made quickly
without testing - usually there is a large and aggressive
company who determines the prices from the industry, and
almost all other companies are obliged to follow, except a few
niche companies
Question : Pricing strategy
Correct answer: Price takers: - follow the prices set by other
firms Price makers: - Possess the market power to determine
the levels and patterns of price that others follow
Question : Price takers
Correct answer: - follow the prices set by other firms

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