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Naily [24]
3 years ago
13

While shopping for a new dress to wear at her high school reunion, Gemma buys an expensive designer dress because of the prestig

e associated with the designer brand. She wants to convey to her old classmates that she is rich and successful. Gemma most likely decided on the dress on the basis of _____.
a.
hedonic criteria
b.
enduring involvement
c.
conjoint analysis
d.
temporal factors
Business
1 answer:
beks73 [17]3 years ago
7 0

Answer:

a. hedonic criteria

Explanation:

While shopping for a new dress to wear at her high school reunion, Gemma buys an expensive designer dress because of the prestige associated with the designer brand. She wants to convey to her old classmates that she is rich and successful. Gemma most likely decided on the dress on the basis of <u>hedonic criteria.</u>

Hedonic purchase are made to feel pleasure, fun and luxury. This purchase are meant for maintaining social status. It is opposite to the utilitarian purchase which are made for nessesities and basic need of life. Hedonic purchase are influnced by peer group, society and self ego.

Hence, the given case Gemma most likely decided on the dress on the basis of Hedonic criteria.

You might be interested in
The manager of a firm believes that she could increase sales by 1 unit per month if she lowered the price by 50 cents, but the r
melisa1 [442]

Answer:

Inelastic

Explanation:

Price elasticity of demand refers to degree of responsiveness of change in demand with due to the change in price.

When a small change in price is accompanied by a higher change in the quantity demanded, this indicates the demand being elastic.

On the other hand, when a substantial change in price results in less than proportionate change in the quantity demanded, it indicates that demand is inelastic.

Price elasticity of demand is mathematically represented as:

E_{p} = \frac{dQ}{dP} *\ \frac{p}{q}

wherein, E_{p} = Price elasticity of demand

              dQ= change in quantity demanded i.e Q_{2} \ -\ Q_{1}

              dP = Change in price i.e P_{2} \ -\ P_{1}

              p = original price

              q = original quantity

In the given case, the manager thinks, when price is reduced by 50 cents, the sales quantity will rise by 1 unit, but the total revenue, which is the product of price and quantity demanded, will fall. This indicates, the demand was perceived as inelastic.

This represents the case wherein, with fall in prices, the total revenue also falls i.e inelastic demand.

3 0
3 years ago
Pharoah Inc. has decided to raise additional capital by issuing $173,000 facevalue of bonds with a coupon rate of 6%. In discuss
Ira Lisetskai [31]

Answer:

a.                                               Debit         Credit

Cash                                       $174,600

Discount on bond payable   $18,941

        Bonds Payable                                  $173,000

        Paid -in Capital - Stock Warrants    $20,541

<u>Workings</u>

Market value of Bonds        155,700

Market value of Warrants    <u>20,760</u>

Total market value               176,460

Value assigned to Bonds = 174,600 / 176,460 * 155,700 = 154,059

Value assigned to Warrants = 174,600 / 176,460 *20,760 = 20,541

b.                                              Debit       Credit

Cash                                        $174,600

Discount receivable                                 $1,600

         Bonds Payable                                $173,000

5 0
3 years ago
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:
jenyasd209 [6]

Answer:

3. Sales Price 435 per unit

4. Variable cost $ 348 per unit

5. Contribution margin $ 87 per unit.

6. Contribution Format Income Statement

Explanation:

<u>Todrick Company </u>

<u>Contribution Format Income Statement.</u>

Sales                                $435,000

Beginning merchandise inventory $29,000

Purchases $290,000

Ending merchandise inventory $14,500

Direct Materials Used 304,500

Variable selling expense $ 21,750

Variable administrative expense $ ? 21750

Contribution margin $87,000

Fixed selling expense $ ? 43,500

Fixed administrative expense $17,400

Net operating income $26,100

<u>Todrick Company </u>

<u>Traditional Format Income Statement.</u>

Sales                                $435,000

Beginning merchandise inventory $29,000

Purchases $290,000

Ending merchandise inventory $14,500

Direct Materials Used 304,500

Gross Profit       $ 130,500

Less Selling And Admin. Expenses.

Variable selling expense $ 21,750

Fixed selling expense $ ? 43,500

Variable administrative expense $ ? 21750

Fixed administrative expense $17,400

Net operating income $26,100

3. Sales Price Per unit = Total Sales/ Total Sales Units

                                  =  $435,000/1000= $ 435 per unit

4. Variable cost per unit= Total Variable Costs/ No of Units=

                                              =    304,500 + 43,500/1000

                                                   = 348,000/1000= $ 348 per unit

5. Contribution margin per unit= Contribution Margin / No of Unit

                                              = $87,000/1000= $ 87 per unit.

6. Contribution Format Income Statement is more useful as it changes with the number of units varied. Traditional may not show the change that accurately as fixed expenses do not change with the change in the number of units.And in contribution margin income statement the variable expenses are accounted for separately.

4 0
3 years ago
Which of the following statements is most​ correct? A. KSFs are often​ necessary, but not sufficient for competitive advantage.B
anzhelika [568]

Answer:

A.  KSFs are often necessary, but not sufficient for competitive advantage.

Explanation:

KSF

Key Success Factors (KSFs) represent business functions, practices or business activities as defined or seen by the customers or the market as being important or crucial to the development of consumer/business relationship.

KSFs represent areas organisations are to attend to based on the views of the market in order to achieve their goals. It could be in form strengths to maximize, weaknesses to address, aspects to take advantage of among others.

It becomes obvious that although important (from the view of the market or consumers who patronize the business), a business must makes its own due diligence in form of SWOT analysis among others to have the required competitive advantage.

4 0
3 years ago
Use the information about Company X below to help answer this question:
Harman [31]

Answer:

b. $12.67

Explanation:

The value of the company is the present value of its future dividends payments discounted at the company's cost of equity.

Year 1 dividend=current year dividend*(1+12%)

Year 1 dividend=$60m*(1+12%)=$67.20m

Year 2 dividend=$67.20m*(1+12%)=$75.26m

Year 3 dividend=$75.26m*(1+12%)=$ 84.30m  

Year 4 dividend=$ 84.30m*(1+12%)=$ 94.41m

Year 5 dividend=$ 94.41m*(1+12%)=$105.74m

the terminal value of dividends=Year 5 dividend*(1+terminal growth rate)/(cost of equity)

the terminal value of dividends=$105.74m*(1+8%)/(16%-8%)=$1427.49m

value of the company=$67.20/(1+16%)^1+$75.26/(1+16%)^2+$ 84.30/(1+12%)^3+$ 94.41/(1+16%)^4+$105.74/(1+16%)^5+$1427.49/(1+16%)^5

value of the company=$956.00 m

value of one share=$956.00 m/75m=$12.75(the correct option is $12.67 the difference is due to rounding error)

5 0
3 years ago
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