An organization is competing in the high technology market. It sets a high sales price for its products initially to target the early adopters, and then the price is gradually reduced. This pricing strategy is known as:
A large company that sells a single product has many customers. The contribution per unit of the product is $40. Data for the company as a whole are given below.
Using customer profitability analysis, what is the total annual profit for this customer?
A manufacturing company has recently introduced a Total Quality Management (TQM) system. The company has invested heavily in the education and training of its staff, in addition to implementing new product design engineering. There is a plan to sample units from each batch of products manufactured to test for errors, although this has not yet been implemented due to budget constraints. The company is experiencing high levels of customer complaints, with many faulty units being returned by the customer for refund or replacement. Sales revenue has fallen recently, mainly due to negative press coverage linked to dissatisfied customers. Select the statement MOST likely to apply.