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Korolek [52]
4 years ago
14

Mini-Case Gourmet Pets is an innovative competitor in the billion dollar pet food industry. In fact, two of its products, Kitty

Sirloin and McDog T-bone, each claim over a 30% share in their market segments. The company has done detailed research and discovered that, for a growing number of pet owners, the family pet serves as a "baby substitute." These owners tend to pamper their pets, and are very discriminating in what they purchase. With this in mind, the company has put a great deal of effort into developing a new dog food: Prime Cuts. The new product is packaged in a resealable, microwaveable container and can be purchased in a variety of flavors (including Western BBQ, Teriyaki, Australian Outback, and Hickory Smoked.) Gourmet Pets promotes the product as far superior to "average" dog foods, even though the quality of meat and nutrient content of the food is virtually identical to many other brands. The company faces no competition in this market segment so it plans to charge a high price for the product. Gourmet Pets feels its target market is more concerned with perceived quality than actual product cost. They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market, so they face no direct competition. Their decision to charge a high price is consistent with the ________ strategy.
Business
1 answer:
777dan777 [17]4 years ago
5 0

Answer:

Premium pricing strategy

Explanation:

The premium pricing strategy consists in charging an artificially high price for the product under the rationale that consumers will respond positively to the high price.

The assumption is that customers will believe that a high price means that the product is reliable and of high quality, and that they will buy the product in significant quantities because of this.

In this question, we have an example of premium pricing because the firm is charging a price that should be lower, for a product that is marketed as of being of higher quality than it is, under the assumption (after conducting a marketing study) that customers care more about the perceived quality of the product, than its real quality, and its price.

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What are the 5 factors taken into account when calculating a credit score?.
Lubov Fominskaja [6]

Answer:

Payment history. Payment history is the most important ingredient in credit scoring, and even one missed payment can have a negative impact on your score. ...

Amounts owed. ...

Credit history length. ...

Credit mix. ...

New credit.

Explanation:

6 0
2 years ago
Heather drives her minivan 953 miles for business purposes in 2019. She elects to use the standard mileage rate for her auto exp
natka813 [3]

Answer:

Answer is $552.74

Refer below.

Explanation:

Standard mileage rate in 2019=0.58.

953 miles for business purposes in 2019.

953×0.58=552.74

8 0
3 years ago
How do margin trades magnify both the upside potential and the downside risk of an investment position?
klio [65]

Answer and Explanation:

Margin trades work this way because they allow them to extend the amount of money invested regardless of whether the security's price drops or rises. In a more simplified way, we can state that the margin trade allows that even if the price of a security goes up or down, the invested money presents a percentage of gain or loss much bigger than the original value. This is because this money was deposited as a loan guarantee, allowing interest to run on it, increasing it.

4 0
3 years ago
On January 1, 2015, Mansfield Company has a retained earnings balance of $256,000. During 2015, its net income is $44,000 and it
Lostsunrise [7]

Answer:

b. $288,000

Explanation:

Data provided

Beginning retained earning = $256,000

Net income = $44,000

Dividend = $12,000

The computation of retained earnings balance is shown below:-

Retained earnings balance = Beginning retained earning + Net income - Dividend

= $256,000 + $44,000 - $12,000

= $288,000

Therefore for computing the retained earning balance we simply applied the above formula.

4 0
4 years ago
Comfy Cozy Chairs makes and sells rockers. Each rocker requires $45 of direct materials and $37 of direct labor. Variable manufa
igomit [66]

Answer:

the unit product cost using absorption costing is $119

Explanation:

The computation of the unit product cost using absorption costing is given below:

= Direct material per unit + direct labor per unit + variable manufacturing cost per unit + fixed manufacturing cost

= $45 + $37 + $8 + ($58,000 ÷ 2000)

= $119

Hence, the unit product cost using absorption costing is $119

8 0
3 years ago
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