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dimulka [17.4K]
4 years ago
12

Value-based marketing requires that firms charge a price that customers perceive as giving them a good value for the product the

y receive. true false
Business
1 answer:
PilotLPTM [1.2K]4 years ago
3 0

Answer:

True

Explanation:

Value-based marketing is a shift from product centered to customer centered approach. Customer values and ethics are the primary drivers of this strategy.

When value- based pricing is done, the customer's perception of the value of goods and services is taken into consideration.

This is different from basing price on product cost or historical price.

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Ethan put $4000 in a 2-year CD paying 5% interest, compounded monthly. After 2 years, he withdrew all his money. What was the am
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The total amount was $4419.76

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Entrepreneurs are innovated because they:
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Seek new ways of improving their products and services & Use those ideas to generate income

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3 years ago
Cooperton Mining just announced it will cut its dividend from $4.22 to $2.63 per share and use the extra funds to expand. Prior
erastova [34]

Answer:

The expected share price=$20.07

Explanation:

Step 1: Calculate the price/earnings to growth ratio(PEG) ;

PEG ratio=(Price/EPS)/EPS growth

where;

Price=Price per share

EPS=earnings per share=share price

EPS growth=share price growth

In our case;

Price per share=$4.22

Share price=$48.83

Share price growth rate=3.1%=

Replacing;

PEG ratio=(4.22/48.83)/3.1

PEG ratio=0.0279

Step 2: Calculate share price

PEG ratio=(Price per share/share price)/share price growth

where;

PEG ratio=0.0279

Price per share=$2.63

Share price=x

share price growth rate=4.7%

Replacing;

0.0279=(2.63/x)/4.7=2.63/4.7 x

4.7 x×0.0279=2.63

x=2.63/(4.7×0.0279)

x=20.07

The expected share price=$20.07

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