The Grapes Of Wrath By John Steinbeck Essay - 1653 Words

In John Steinbeck’s novel The Grapes of Wrath, the hardships of the Great Depression lead the Californians and the Okies to treat each other kindly or harshly, based on their own concerns of the future. Social criticism and class conflict are primary themes in this novel because of the unjust treatment the Californians give to the Okies throughout the story, but this is not the only relationship Steinbeck focuses on. He also writes and explains the relationship among the Okies. Steinbeck was born in Salinas, California, where a part of this novel takes place, and Steinbeck uses his experience of working as a hired ranch hand during the Great Depression in the novel. The foundation of The Grapes of Wrath are the problems and tragedies that the Great Depression brings to the Okies. During the Great Depression, which lasted from 1929-1939, the stock market crashed and companies and businesses did as well. Banks lost life savings, leaving the majority of the United States broke. T hen, sandstorms that covered 5 million square miles of the Midwest left farmers without farms or money (â€Å"Grapes,† Novels 114). The bank had to force farmers out of their homes and these farmers and their families began migrating to California and were nicknamed â€Å"Okies†. Unfortunately, the Okies were hated by the Californians rather than welcomed. Many different kinds of people in California hated the Okies for various reasons. The first kind of people were the laborers. The laborers hated the OkiesShow MoreRelatedThe Grapes Of Wrath By John Steinbeck Essay1622 Words   |  7 Pages The Grapes of Wrath John Steinbeck, widely viewed as one of the most finest and powerful American writer, born to a middle-class family in 1902 in the Salinas Valley of California. Steinbeck is a writer who often spoke for the people. The Grapes of Wrath is a great movie, published in 1939, filled with many universal truths and views on human nature and society, especially where class is concerned. In the article, John Steinbeck The Grapes a wrath: A Call to Action says, â€Å"Steinbeck’s novel showcasedRead MoreThe Grapes Of Wrath By John Steinbeck1075 Words   |  5 PagesKirsten Lloyd Mr. Eldridge AP Junior English 21 August 2014 Grapes of Wrath â€Å"Sometimes even to live is an act of courage.† (Seneca), In the 1939 novel, The Grapes of Wrath by John Steinbeck, the reader accompanies the Joad family as they struggle to escape the crippling Dust Bowl of the mid- 1930’s. In hopes of establishing a new life for themselves after being forced off their land the family embark on a journey from Oklahoma to California in search of fruitful crops and steady work alongRead MoreThe Grapes Of Wrath By John Steinbeck1563 Words   |  7 Pages John Steinbeck’s novel, The Grapes of Wrath, depicts a migrant farming family in the 1930s. During this time, life revolved around the Great Depression and the Dust Bowl, making circumstances difficult for almost everyone involved, especially those who had little. This time of drought and despair caused people to lose hope in everything they’ve ever known, even themselves, but those who did not, put their hope in the â€Å"promised land† of California. Here, the grass was thought to be truly greenerRead MoreThe Grapes Of Wrath By John Steinbeck1189 Words   |  5 Pagesâ€Å"The Grapes of Wrath† Shortly after being released John Steinbeck’s book â€Å"The Grapes of Wrath† was banned because many critics viewed the novel as promoting communist propaganda, or socialist ideas. The ideas that many of these critics point to is Steinbeck’s depiction of the Big Banks/ Businesses as monsters, the comparison of Government camps to a utopia in contrast of the makeshift â€Å"Hoovervilles,† and the theme of the community before the individual, In his novel â€Å"The Grapes of Wrath† John SteinbeckRead MoreThe Grapes Of Wrath By John Steinbeck1093 Words   |  5 Pages In John Steinbeck s The Grapes of Wrath, Tom Joad and his family are forced from their home during the 1930’s Oklahoma Dust Bowl and set out for California along with thousands of others in search of jobs, land, and hope for a brighter future. The Grapes of Wrath is Steinbeck’s way to expound about the injustice and hardship of real migrants during the Depression-era. H e utilizes accurate factual information, somber imagery, and creates pathos, allowing readers connections to the Joad’s plightRead MoreThe Grapes Of Wrath By John Steinbeck1190 Words   |  5 PagesThe Grapes of Wrath April 14th, 1939, John Steinbeck published the novel, The Grapes of Wrath. The novel became an immediate best seller, with selling over 428,900 copies. Steinbeck, who lived through both the Great Depression and the Dust Bowl, sought to bring attention to how families of Oklahoma outdid these disasters. Steinbeck focuses on families of Oklahoma, including the Joads family, who reside on a farm. The Joad family is tested with hardship when life for them on their farm takesRead MoreThe Grapes of Wrath by John Steinbeck702 Words   |  3 PagesJohn Steinbeck’s use of the intercalary chapters in The Grapes of Wrath helps weave the reader’s sympathy of the Joad family into a more broad sympathy for the migrant farmers as a whole, in the hopes that the readers would then be compelled to act upon what they have read. During the Great Depression, people had a big disconnect about what was happening in various parts of the country. People often struggle to find sympathy for events when they can’t even visualize a person who is suffering throughRead MoreThe Grapes Of Wrath By John Steinbeck2144 Words   |  9 PagesThe Grapes of Wrath is a well-known beloved novel of American Literature, written by John Steinbeck and published in 1939. Whoever said a road is just a road has not read The Grapes of Wrath. From the time we read when Tom Joad, novel’s protagonist, returns home after four years in prison; the meaning of roads changed. Route 66, also known as the mother road the road of flight, was a lifeline road, which allowed thousands of families to pursue their hopes and dreams. This road is also the road thatRead MoreThe Grapes of Wrath by John Steinbeck1014 Words   |  5 PagesJohn Steinbeck’s novel, The Grapes of Wrath, was first written and later published in the 1939. Fr om the time of its publication to date, the exemplary yet a simple book has seen Steinbeck win a number of highly coveted awards including Pulitzer Prize in 1940 and later on Nobel Prize for Literature in 1962. Set at the time of the Great Depression, the book most remarkably gives a descriptive account of the Oklahoma based sharecropper Joad’ poor family in the light of economic hardship, homelessnessRead MoreThe Grapes Of Wrath By John Steinbeck1064 Words   |  5 PagesThe Grapes of Wrath, originated from a John Steinbeck’s book, a legendary film that focus on a major point of American history. The story follows the Joad family on their journey to California trying to survive the hardships. This film, focus on the social problems of America like the Dust bowl, The Great Depression, and industrialism. The Grapes of Wrath was filmed in a journalistic-documentary style, which displayed the realism of the epidemic in the thirties. The thirties the period The Grapes

How Do Bacteria Divide - 1600 Words

How do bacteria divide? Introduction Cytokinesis is the process of producing to progeny cells (Scitable by nature education, 2014); the main process by which bacteria reproduce is asexual producing genetically identical offspring. The most common process of cell division in bacteria is binary fission. In this essay I intend to explain some aspects of DNA replication and septation – including the synthesis of peptidoglycan in the new cell wall – using the model organism Escherichia coli. Also, I will discuss the role and function of Fts proteins in cell division. Finally, I will discuss some less common forms of bacterial cell division, cell division where FtsZ is absent and some key facts from reliable sources on all the topics covered in†¦show more content†¦Replication is completed at the terminus, this is directly opposite the origin. While the two nucleoids occupy the centre of the cell they prevent the binding of FtsZ which I will discuss later. The two origins formed during replication move away from each other to opposite ends of the cell; the rest of the strand following. Currently, microbiologists/scientists do not fully understand how the chromosomes are split between progeny cells as this has not been fully investigated – presently, the evidence suggests there are various mechanism to do this and it varies depending on the bacterial species (Wiley, J.M, Sherwood, L.M. and Woolverton, C.J. 2014). In optimal conditions E.coli has a generation time of 20 minutes, however it takes 40 minutes to replicate its genome alone. E.coli is capable of this generation time because the replication of its circular genome is bidirectional – one replicating on the lagging strand one on the leading strand. In addition to this it has multiple DNA replication forks and a new round of DNA replication is possible to begin before last one has ended Wiley, J.M, Sherwood, L.M. and Woolverton, C.J. 2014). This means that E.coli can make more than two copies of its chromosome a t a time which enables a shorter generation time than the time taken to replicate its genome as there are more chromosomes present to be inherited by progeny cells. With replication and chromosome portioning complete, septation –

Role of Geography in International Marketing Free Essays

Discussion Questions for Chapter 3 History and Geography: The Foundation of Culture Discussion Questions 1. Define: Manifest DestinySustainable development Roosevelt CorollaryMonroe Doctrine 2. Why study geography in international marketing? Discuss. We will write a custom essay sample on Role of Geography in International Marketing or any similar topic only for you Order Now Geography is a study of the physical characteristics of a particular region of the earth. Involved in this study are climate, topography, and population. The interaction of the physical characteristics is one of the principal determinants of a country’s customs, products, industries, needs, and methods of satisfying those needs.Marketing is concerned with satisfying the needs of people. International marketing seeks out the whole world as its marketplace. Therefore, for an international marketer to know how to satisfy the needs of the international market, he must be familiar enough with geography to know what the various causal factors of the people’s needs are. He must know that various climates and topographies do exist and that they are vital in shaping the marketing plans that an international marketer must make. As an example, a producer selling machinery in the tropics would have to realize that special protection is needed to keep a machine running properly in hot and humid climates. 3. Why study a country’s history? Discuss History helps define a nation’s â€Å"mission,† how it perceives its neighbors, how it sees its place in the world, and how it sees itself. Insights into the history of a country are important for understanding attitudes about the role of government and business, the relations between managers and the managed, the sources of management authority, and attitudes toward foreign corporations.To understand, explain, and appreciate a people’s image of itself and the attitudes and unconscious fears that reflected in its view of foreign cultures, it is necessary to study the culture as it is now as well as to understand the culture as it was—that is, a country’s history. Unless you have a historical sense of the many changes that have buffeted Japan—seven centuries under the shogun feudal system, the isolation before he coming of Admiral Perry in 1853, the threat of domination by colonial powers, the rise of new social classes, Western influences, the humiliation of World War II, and involvement in the international community—it is difficult to fully understand its contemporary behavior. Loyalty to family, to country, to company, and to social groups and the strong drive to cooperate, to work together for a common cause, permeate many facets of Japanese behavior and have historical roots that date back thousands of years. Loyalty and service, a sense of responsibility, and respect for discipline, training, and artistry have been stressed since ancient times as necessary for stability and order. Confucian philosophy, taught throughout Japan’s history, emphasizes the basic virtue of loyalty â€Å"of friend to friend, of wife to husband, of child to parent, of brother to brother, but, above all, of subject to lord,† that is, to country. A fundamental premise of Japanese ideology reflects the importance of cooperation for the collective good. Japanese achieve consensus by agreeing that all will unite against outside pressures that threaten the collective good.A historical perspective gives the foreigner in Japan a basis on which to begin developing cultural sensitivity and a better understanding of contemporary Japanese behavior. 4. How does an understanding of history help an international marketer? To understand, explain, and appreciate a people’s image of itself and the fundamental attitudes and unconscious fears that are often reflected in its view of foreign cultures, it is necessary to study the culture as it is now as well as to understand culture as it was, that is, a country’s history. An awareness of the history of a country is particularly effective for understanding attitudes about the role of government and business, the relations between managers and the managed, the sources of management authority, and attitudes toward foreign MNC’s. History is what helps define a nation’s â€Å"mission,† how it perceives its neighbors, and how it sees its place in the world. To understand a country’s attitudes, prejudices, and fears it is necessary to look beyond the surface or current events to the inner subtleties of the country’s entire past for clues. 5.Why is there a love/hate relationship between Mexico and the United States? Discuss. A crucial element in understanding any nation’s business and political culture is the subjective perception of its history. To a Mexican, the United States is seen as a threat to their political, economic, and cultural independence. To most citizens in the United States, the causes for such feelings are a mystery. After all, the U. S. has always been Mexico’s â€Å"good neighbor. † Most would agree with President Kennedy’s proclamation during a visit to Mexico, â€Å"Geography has made us neighbors, tradition has made us friends. North Americans may be surprised to learn that most Mexicans felt it more accurate to say, â€Å"Geography has made us closer, tradition has made us far apart. † North Americans feel they have been good neighbors. They see the Monroe Doctrine as protection for Latin America from European colonization and the intervention of Europe in the governments of the Western Hemisphere. Latin Americans tend to see the Monroe Doctrine as an offensive expression of U. S. influence in Latin America. Or to put it another way, â€Å"Europe keep your hands off, Latin American is only for the United States. United States Marines sing with pride of their exploits â€Å"form the Halls of Montezuma to the shores of Tripoli. † To the Mexican, the â€Å"Halls of Montezuma† is remembered as U. S. troops marching all the way to the center of Mexico City and extracting as tribute 890,000 square miles that included Texas, New Mexico, Arizona and California. Most U. S. citizens probably do not know of the boy heroes of Chaptultepec Park but every Mexican can recount the heroism of â€Å"Los Ninos Heroes,† and the loss of Mexican territory to the United States. 6. Some say the global environment is a global issue rather than a national one. What does this mean? Discuss. Many view the problem as a global issue rather than a national one. One report on the global environment stressed . . . â€Å"it is quite clear that a number of critical problems—the threat to the ozone layer, the greenhouse effect, the loss of biodiversity, and ocean pollution—cannot be addressed by nations in isolation. † Companies looking to build manufacturing plants in countries with more liberal pollution regulations than they have at home are finding that regulations everywhere are becoming stricter. Many Asian governments are drafting new regulations and strictly enforcing existing ones.A strong motivator for Asia and the rest of the world is the realization that pollution is on the verge of getting completely out of control. Neither Western Europe nor the rest of the industrialized world are free of environmental damage; rivers are polluted and the atmosphere in many major urban areas is far from clean. The very process of controlling industrial wastes leads to another and perhaps equally critical issue: the disposal of hazardous waste, a by-product of pollution control. Estimates of hazardous wastes collected annually exceed 300 million tons; the critical question is disposal that does not move the problem elsewhere.The business community is responding positively to the notion that the focus must be on the global environment rather than â€Å"the quality of the air, land, and water in our own backyards. † An International Chamber of Commerce Industry Forum on the envir onment reflected a shift in company attitudes toward environmental issues away from a reactive and largely defensive stance to a proactive and constructive approach. Some skeptics may dismiss such statements as â€Å"window dressing† and they could be, but the beginning of change is awareness.Responsibility for cleaning up the environment does not rest solely with governments, businesses, or activist groups. Each citizen has social and moral responsibility to include environmental protection among his/her highest goals. 7. Pick a country and show how employment and topography affect marketing within the country. Library project. 8. Pick a country (other than Mexico) and show how significant historical events have affected the country’s culture. Library Project 9. Discuss the bases of world trade. Give examples illustrating the different bases. The basis for world trade is the differences between countries.One of these differences is the difference between people. Different heritages have resulted in the development of certain unique skills in the people of a country. An example would be the watchmaking skill developed by the Swiss. Thus, they have a unique skill on which to base trade. Another difference is the one of differing stages of economic development existing in the world today. Some countries are highly developed and industrialized. These nations, such as the United States and France, might be trading in luxuries, whereas an underdeveloped nation, such as Kenya, might be forced to trade only in essential capital goods.A third difference in countries serving as a basis for world trade is the availability of natural resources. Great Britain, poor in mineral resources, imports petroleum, where West Germany, rich in mineral resources but not food, imports large amounts of fruits and vegetables. Thus, trade is created by these differences: (1) Differences in skills – other countries seek the products of skills, (2) differences in economies – countries seek products they don’t produce but need, and (3) differences in national resources – countries buy and sell resources which they do not have or have an abundance of. 0. The marketer â€Å"should also examine the more complex effect of geography upon general market characteristics, distribution systems, and the state of the economy. † Comment. There can be no doubt that geography has had a â€Å"complex effect upon general market characteristics, distribution systems, and the state of the economy. † Therefore, the world marketer should be careful not to look just at how his product must be changed to fit into a foreign market. That is, he must not just fit his electric motors, say, with high-temperature operating characteristics and stop there. There’s more to it than that. Consider the diverse nature of South America, for example. The channels of distribution that a domestic marketer has been accustomed to using might not even exist because of natural barriers. These same natural barriers also cause quite varied levels of economic development within the same country. Cities and rural areas might not even be on the same economic plane. Finally, as a result of these barriers and thus physical isolation of various population centers, areas of the same economic development might have entirely different cultures.Therefore, the general market characteristics of these areas would also differ greatly and have a direct effect upon the success of marketing plans. 11. The world population pattern trend is shifting from rural to urban areas. Discuss the marketing ramifications There are many marketing ramifications to the world rural-urban population shift. One of the obvious ones is that the world market is becoming more unified in location. Thus, it is becoming easier to reach a larger segment of the market by just marketing in the urban population centers. The types of products marketed will also change with this population shift.For example, food might become a more important product in international marketing with few people raising their own. Similarly, these shifts will result in greater industrialization in countries with presently low levels of industrialization. This again implies marketing changes that might affect the world marketer, increased sales of capital goods, for example. In summary, people living in cities have different needs than those living in the country. Thus, the shift from country to city means that the world marketer has a different market to serve with different characteristics. 12.Select a country with a stable population and one with a rapidly growing population. Contrast the marketing implications of these two situations. Library Project 13. â€Å". . . world trade routes bind the world together . . . † Discuss. World trade routes bind the world together. This statement means that the world trade routes serve as avenues of minimizing differences between countries. Without these routes, countries would stand alone – each different from the rest in resources, economy, and people. The trade routes allow both people and products to flow, making more of a unified, balanced world.The physical imbalances overcome, also smooth, cultural and economic differences through the exchange of ideas as well as products. 14. Discuss how your interpretation of Manifest Destiny and the Monroe Doctrine might differ from a Latin American’s. Manifest Destiny and the Monroe Doctrine were accepted basis for U. S. foreign policy during much of the 19th and 20th centuries. Manifest Destiny, in its broadest interpretation, meant that Americans were a chosen people ordained by God to create a model society. More specifically, it referred to the desires of American expansionists in the 1840s to extend the U.S. boundaries from the Atlantic to the Pacific; the idea of â€Å"Manifest Destiny† was used to justify U. S. annexation of Texas, Oregon, New Mexico, and California; and later, U. S. involvement in Cuba, Alaska, Hawaii and the Philippines. The Monroe Doctrine, a cornerstone of U. S. foreign policy, was enunciated by President James Monroe in a public statement proclaiming three basic dicta: no further European colonization in the New World, abstention of the U. S. from European political affairs, and nonintervention of European governments in the governments of the Western Hemisphere.After 1870, interpretation of the Monroe Doctrine became increasingly broad. In 1881, its principles were evoked in discussing the development of an interoceanic canal across the Isthmus of Panama. The Monroe Doctrine was further applied by Theodore Roosevelt with what became known as the Roosevelt Corollary to the Monroe Doctrine. The corollary stated that not only would the U. S. prohibit non-American intervention in Latin American affairs but it would police the area and guarantee that Latin American nations met their international obligations. The corollary sanctioning American intervention was applied in 1905 when Roosevelt forced he Dominican Republic to accept the appointment of an American economic advisor who quickly became the financial director of the small state; it was used in the acquisition of the Panama Canal Zone from Colombia and the formation of a provisional government in Cuba in 1906. According to U. S. history, these Latin American adventures were a justifiable part of our foreign policy; to Latin Americans, they were unwelcome intrusions in Latin American affairs. The way historical events are recorded and interpreted in one culture can differ substantially from those same events recorded and interpreted in another. A comparison of histories goes a long way in explaining the differences in outlooks and behavior of people on both sides of the border. Many Mexicans believe that their â€Å"good neighbor† to the North is not reluctant to throw its weight around when it wants something. There are suspicions that self-interest is the primary motivation in good relations with Mexico, whether it be fear of Fidel Castro 25 years ago or eagerness for Mexican oil today. 15. The telegraph, telephone, television, satellites, computer, and the Internet have all had an effect on how international business operates.Discuss how each of these communications innovations affects international business management. An underpinning of all commerce is effective communications, knowledge of where goods and services exist and where they are needed and the ability to communicate instantaneously across vast distances. Facilitating the expansion of trade have been continuous improvements in electronic communications. First came the telegraph, then the telephone, television, satellites, the computer and the Internet. Each revolution in electronic technology has had a profound effect on human conditions, economic growth and the manner in which commerce functions.As each â€Å"new† communications technology has had its impact, new business models have been spawned and some existing businesses re-invented to adapt to the new technology while other businesses have failed to respond and thus ceased to exist. The Internet revolution will be no different; it too affects human conditions, economic growth, and the manner in which commerce operates. As we will discuss in subsequent chapters, the Internet has already begun to shape how international business is managed. However, as the Internet permeates the fabric of the world’s cultures, the biggest changes are yet to come! How to cite Role of Geography in International Marketing, Papers

Define and Discuss the Ideas of Global Orientation free essay sample

Market share leadership C) Price D) Product quality leadership E) The target market Answer: C Diff: 1Page Ref: 290 Skill: Concept Objective: 10-1 4) Consumer perceptions of the products value set the ________ for prices. A) demand curve B) floor C) ceiling D) variable cost E) image Answer: C Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 5) Product costs set a(n) ________ to a products price. A) demand curve B) floor C) ceiling D) break-even cost E) experience curve Answer: B Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 6) Which of the following is a customer-oriented approach to pricing? A) value-based pricing B) sealed-bid pricing C) break-even pricing D) target profit pricing E) C and D Answer: A Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 7) ________ uses buyers perceptions of what a product is worth, not the sellers cost, as the key to pricing. A) Value-based pricing B) Value-added pricing C) Variable cost D) Price elasticity E) Product image Answer: A Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 8) In ________, price is considered along with the other marketing mix variables before the marketing program is set. A) value-based pricing B) cost-based pricing C) variable costs D) price elasticity E) building the marketing mix Answer: A Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 9) Value-based pricing is the reverse process of ________. A) variable cost pricing B) cost-plus pricing C) cost-based pricing D) good-value pricing E) value-added pricing Answer: C Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 10) With ________, price is set to match consumers perceptions of product value. A) variable cost pricing B) cost-plus pricing C) cost-based pricing D) value-based pricing E) every day low pricing Answer: D Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 11) Measuring ________ can be difficult. A company might conduct surveys or experiments to test this in the different products they offer. A) price elasticity B) the demand curve C) perceived value D) break-even pricing E) quantity supplied Answer: C Diff: 3Page Ref: 292 AACSB: Communication Skill: Concept Objective: 10-2 12) Underpriced products sell very well, but they produce less revenue than they would have if price were raised to the ________ level. A) perceived B) value-based C) variable D) demand curve E) price-floor Answer: A Diff: 2Page Ref: 292 Skill: Concept Objective: 10-2 3) If a seller charges ________ than the buyers perceived value, the companys sales will ________. A) more; benefit B) more; suffer C) less; increase D) less; suffer E) none of the above Answer: B Diff: 2Page Ref: 292 Skill: Concept Objective: 10-2 14) Some companies have adopted a ________ strategy, offering just the right combination of quality and good service at a fair price. A) val ue-based pricing B) good-value pricing C) cost-plus pricing D) low-price image E) none of the above Answer: B Diff: 1Page Ref: 293 Skill: Concept Objective: 10-2 15) Wal-Mart is famous for using what important type of value pricing? A) competition-based pricing B) everyday low pricing C) cost-plus pricing D) break-even pricing E) penetration pricing Answer: B Diff: 2Page Ref: 293 Skill: Concept Objective: 10-2 16) ________ involves charging a constant, everyday low price with few or no temporary price discounts. A) High-low pricing B) Target pricing C) Cost-plus pricing D) EDLP E) Penetration pricing Answer: D Diff: 2Page Ref: 293 Skill: Concept Objective: 10-2 17) ________ involves attaching features and services to differentiate a companys offers and to support charging higher prices.. A) Break-even pricing B) Target pricing C) Value-added pricing D) Cost-plus pricing E) Pricing-down Answer: C Diff: 1Page Ref: 293 Skill: Concept Objective: 10-2 18) ________ is a companys power to escape price competition and to justify higher prices and margins. A) Variable cost B) Pricing power C) Target cost D) Fixed cost E) Unit cost Answer: B Diff: 2Page Ref: 293 Skill: Concept Objective: 10-2 19) To maintain and increase a companys ________, a firm must retain or build the value of its marketing offer. A) variable cost B) pricing power C) target cost D) fixed cost E) image Answer: B Diff: 3Page Ref: 293 Skill: Concept Objective: 10-2 0) When there is price competition, many companies adopt ________ rather than cutting prices to match competitors. A) pricing power B) value-added strategies C) fixed costs D) price elasticity E) image pricing Answer: B Diff: 2Page Ref: 293 Skill: Concept Objective: 10-2 21) Ryanair offers free flights to a quarter of its customers and rock-bottom prices to many of its other customers. Ryanair then charges for all extra services, such as baggage handling and in-flight refreshments. Which of the following best describes Ryanairs pricing method? A) value-added pricing B) low-cost pricing C) cost-plus pricing D) high-low pricing E) image pricing Answer: B Diff: 2Page Ref: 295 Skill: Concept Objective: 10-2 22) ________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the companys efforts and risks. A) Value-based B) Fixed cost C) Cost-based D) Variable E) Skimming Answer: C Diff: 1Page Ref: 295 Skill: Concept Objective: 10-3 23) Fixed costs ________ as the number of units produced increases. A) decrease B) increase C) divide in half D) remain the same E) increase at a diminishing rate Answer: D Diff: 2Page Ref: 295 Skill: Concept Objective: 10-3 24) Costs that do not vary with production or sales level are referred to as ________. A) fixed costs B) variable costs C) target costs D) total costs E) unit costs Answer: A Diff: 1Page Ref: 295 Skill: Concept Objective: 10-3 25) Rent, electricity and executive salaries are examples of ________. A) fixed costs B) variable costs C) accumulated costs D) total costs E) marketing costs Answer: A Diff: 2Page Ref: 295 Skill: Concept Objective: 10-3 26) Costs that vary directly with the level of production are referred to as ________. A) fixed costs B) variable costs C) target costs D) total costs E) unit costs Answer: B Diff: 1Page Ref: 296 Skill: Concept Objective: 10-3 27) ________ are the sum of the ________ and ________ for any given level of production. A) Fixed costs; variable; total costs B) Fixed costs; total; variable costs C) Variable costs; fixed; total costs D) Total costs; fixed; variable costs E) Break-even costs; fixed; total costs Answer: D Diff: 2Page Ref: 296 Skill: Concept Objective: 10-3 28) SRAC is the acronym for which concept related to costs at different levels of production? A) strategic reasoning and costs B) short-run accounting costs C) short-run average cost D) strategic rights and company E) strategic revenues and costs Answer: C Diff: 2Page Ref: 296 Skill: Concept Objective: 10-3 29) As production workers become better organized and more familiar with equipment, the average cost per unit decreases. This is called the ________. A) demand curve B) experience curve C) short-run average cost curve D) long-run average cost curve E) marginal utility Answer: B Diff: 1Page Ref: 296 Skill: Concept Objective: 10-3 30) With a higher volume of product, most companies can expect to ________. A) gain economies of scale B) become less efficient C) see average costs increase D) have a straight, horizontal learning curve E) find competitors using the experience curve strategically Answer: A Diff: 2Page Ref: 296 Skill: Concept Objective: 10-3 31) The experience curve reveals that ________. A) repetition in production lowers costs B) repetition in production enhances efficiency C) the average cost drops with accumulated production experience D) A, B, and C E) none of the above Answer: D Diff: 3Page Ref: 296 Skill: Concept Objective: 10-3 32) When a downward-sloping experience curve exists, a company should usually ________ the selling price of that product in order to bring in higher revenues. A) increase B) greatly increase C) decrease D) not alter E) none of the above Answer: C Diff: 3Page Ref: 297 Skill: Concept Objective: 10-3 33) Which of the following is a risk a company takes when building a strategy around the experience curve? A) Competitors will likely not be able to meet the companys price cuts. B) Existing technologies are likely to become more expensive as the company expands. C) The method does not take competitors prices into account. D) The method may cause consumers to become frustrated with changing prices. E) Aggressive pricing may give the product a cheap image, causing customers to lose interest. Answer: E Diff: 2Page Ref: 297 Skill: Concept Objective: 10-3 34) A company building its pricing strategy around the experience curve would be likely to ________. A) price its products low B) price its products high C) engage in break-even pricing D) all of the above E) none of the above Answer: A Diff: 3Page Ref: 297 Skill: Concept Objective: 10-3 35) The company designs what it considers to be a good product, totals the expenses of making the product, and sets a price that adds a standard mark-up to the cost of the product. This approach to pricing is called ________. A) value-based pricing B) fixed cost pricing C) cost-plus pricing D) variable pricing E) skimming pricing Answer: C Diff: 1Page Ref: 297 Skill: Concept Objective: 10-3 36) Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This is known as ________. A) variable costs B) cost-plus pricing C) value-based pricing D) break-even price E) penetration pricing Answer: B Diff: 2Page Ref: 297 Skill: Concept Objective: 10-3 37) The simplest pricing method is ________. A) value-based pricing B) going-rate and sealed-bid pricing C) cost-plus pricing D) break-even analysis E) target profit pricing Answer: C Diff: 2Page Ref: 297 Skill: Concept Objective: 10-3 38) Which of the following is a reason why markup pricing is NOT practical? A) Sellers earn a fair return on their investment. B) By tying the price to cost, sellers simplify pricing. C) When all firms in the industry use this pricing method, prices tend to be similar. D) This method ignores demand. E) With a standard markup, consumers know when they are being overcharged. Answer: D Diff: 3Page Ref: 298 Skill: Concept Objective: 10-3 39) One reason ________ remains popular is that sellers are more certain about costs than about demand. A) markup pricing B) variable pricing C) inelasticity pricing D) elasticity pricing E) penetration pricing Answer: A Diff: 2Page Ref: 298 Skill: Concept Objective: 10-3 40) Price competition is minimized when all firms in an industry use which pricing method? A) variable pricing B) markup pricing C) elasticity pricing D) value-added pricing E) value-based pricing Answer: B Diff: 3Page Ref: 298 Skill: Concept Objective: 10-3 41) Many people feel that ________ pricing is fairer to both buyers and sellers. Sellers earn a fair return on their investment but do not take advantage of buyers when buyers demand becomes great. A) variable B) markup C) elasticity D) inelasticity E) penetration Answer: B Diff: 2Page Ref: 298 AACSB: Ethical Reasoning Skill: Concept Objective: 10-3 42) Which of the following is a cost-based approach to pricing? A) value-based pricing B) going-rate pricing C) target profit pricing D) good value pricing E) A and C Answer: C Diff: 2Page Ref: 298 Skill: Concept Objective: 10-3 43) Break-even pricing, or a variation called ________, is when the firm tries to determine the price at which it will break even or make the profit it is seeking. A) competition-based pricing B) target profit pricing C) fixed cost pricing D) value-based pricing E) customer-based pricing Answer: B Diff: 1Page Ref: 298 Skill: Concept Objective: 10-3 44) Target profit pricing uses the concept of a ________, which shows the total cost and total revenue expected at different sales volume levels. A) value-based chart B) break-even chart C) competition-based chart D) demand-curve E) unit cost Answer: B Diff: 2Page Ref: 298 Skill: Concept Objective: 10-3 45) The break-even volume is the point at which ________. A) the total revenue and total costs lines intersect B) demand equals supply C) the production of one more unit will not increase profit D) the company can pay all of its long-term debt E) a firms profit goal is reached Answer: A Diff: 3Page Ref: 298 Skill: Concept Objective: 10-3 46) ________ pricing works only if that price actually brings in the expected level of sales. A) Elasticity B) Markup C) Variable D) Inelasticity E) Target profit Answer: E Diff: 3Page Ref: 298 Skill: Concept Objective: 10-3 47) Which of the following statements about break-even analysis is true? A) It is used to determine how much production experience a company must have to achieve desired efficiencies. B) It is a technique used to calculate fixed costs. C) It determines the amount of retained earnings a company will have during an accounting period. D) It is a technique marketers use to examine the relationship between supply and demand. E) It is calculated using variable costs, the unit price, and fixed costs. Answer: E Diff: 3Page Ref: 298 Skill: Concept Objective: 10-3 48) As a manufacturer increases price, the ________ drops. A) target B) break-even volume C) cost-plus pricing D) total cost E) sales Answer: B Diff: 3Page Ref: 299 Skill: Concept Objective: 10-3 49) Which of the following is an external factor that affects pricing decisions? A) the salaries of production management B) competition C) the salaries of finance management D) funds expensed to clean production equipment E) A, B, and C Answer: B Diff: 1Page Ref: 299 Skill: Concept Objective: 10-4 50) ________ that influence pricing decisions include the nature of the market and demand and competitors prices. A) Internal factors B) Elasticity factors C) External factors D) Target factors E) Domestic factors Answer: C Diff: 2Page Ref: 299 Skill: Concept Objective: 10-4 51) Companies may set prices low for which of the following reasons EXCEPT ________. A) to prevent competition from entering the market B) to stabilize the market C) to create excitement for a product D) to prepare for an easy exit from a market E) to match a competitor Answer: D Diff: 2Page Ref: 299 Skill: Concept Objective: 10-4 52) In order to form a consistent and effective integrated marketing program, price decisions should be coordinated with each of the following EXCEPT ________. A) product design B) distribution C) competitors prices D) promotion decisions E) marketing objectives Answer: C Diff: 2Page Ref: 299 Skill: Concept Objective: 10-4 53) With target costing, marketers will first ________ and then ________. A) build the marketing mix; identify the target market B) identify the target market; build the marketing mix C) design the product; determine its cost D) use skimming pricing; penetrating pricing E) determine a selling price; target costs to ensure that the price is met Answer: E Diff: 2Page Ref: 300 Skill: Concept Objective: 10-4 54) Price setting is usually determined by ________ in small companies. A) top management B) marketing departments C) sales departments D) divisional managers E) cross-functional teams Answer: A Diff: 2Page Ref: 300 Skill: Concept Objective: 10-4 55) Price setting is usually determined by ________ in large companies. A) top management B) divisional managers C) product line managers D) pricing departments E) both B and C Answer: E Diff: 2Page Ref: 300 Skill: Concept Objective: 10-4 56) In industrial markets, ________ typically has the final say in setting the pricing objectives and policies of a company. A) the sales manager B) top management C) the production manager D) the finance manager E) the pricing department Answer: B Diff: 2Page Ref: 300 Skill: Concept Objective: 10-4 57) In industries in which pricing is a key factor, ________ often set the best prices or help others in setting them. A) sales managers B) top managers C) production managers D) finance managers E) pricing departments Answer: E Diff: 2Page Ref: 300 Skill: Concept Objective: 10-4 58) Under ________, the market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial securities. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) anti-trust agreements Answer: A Diff: 2Page Ref: 302 Skill: Concept Objective: 10-4 59) Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. A) pure competition B) monopolistic competition C) oligopolistic competition D) pure monopoly E) socialism Answer: B Diff: 2Page Ref: 302 Skill: Concept Objective: 10-4 60) Under ________, the market consists of a few sellers who are highly sensitive to each others pricing and marketing strategies. A) pure competition B) monopolistic competition C) oligopolistic competition D) pure monopoly E) capitalism Answer: C Diff: 2Page Ref: 302 Skill: Concept Objective: 10-4 61) Nonregulated monopolies are free to price at what the market will bear. However, they do not always charge the full price for a number of reasons. What is NOT one of those reasons? A) They dont want to attract competition. B) They want to penetrate the market faster with a low price. C) They have a fear of government regulation. D) They want to encourage government regulations. E) They want to please a large group of consumers. Answer: D Diff: 3Page Ref: 303 Skill: Concept Objective: 10-4 62) The relationship between the price charged and the resulting demand level can be shown as the ________. A) demand curve B) variable cost C) target cost D) break-even pricing E) experience curve Answer: A Diff: 1Page Ref: 303 Skill: Concept Objective: 10-4 63) Consumers usually perceive higher-priced products as ________. A) out of reach for most people B) having high quality C) having high profit margins D) having cost-based prices E) being in the introductory stage of the product life cycle Answer: B Diff: 3Page Ref: 303 Skill: Concept Objective: 10-4 64) Why do marketers consider prestige goods to be an exception to the typical demand curve? A) The demand curve for prestige goods slopes downward and to the right. B) Increasing the price of prestige goods can make them seem more desirable. C) Demand for prestige goods often is greater than supply. D) Prestige products such as diamonds, sapphires, and emeralds are nonrenewable resources. E) Customers are more aware of any price changes to prestige goods. Answer: B Diff: 3Page Ref: 303 Skill: Concept Objective: 10-4 65) Which of the following is true about the demand curve? A) It is used to illustrate the effect of price on the quantity supplied. B) It is always graphically depicted by a straight line. C) It shows the quantity of product customers will buy in a market during a period of time even if other factors change. D) It usually slopes upward and to the right. E) It shows the relationship between product demand and product price. Answer: E Diff: 3Page Ref: 303 Skill: Concept Objective: 10-4 6) When Gibson Guitar Corporation, long known for its high quality instruments, lowered its prices to compete more effectively with Japanese rivals, the company sold fewer guitars. Which of the following best explains this? A) The Gibson guitars were not as well made as the Japanese guitars. B) The market was already flooded with guitars. C) The sound of the Gibson guitar was not as good as the Japanese guitars. D) Customers did not distinguish the superiority of the Gibson guitar when it was at a lower price. E) Customers had come to expect a higher price for a Gibson guitar. Answer: D Diff: 3Page Ref: 303 Skill: Concept Objective: 10-4 67) ________ describes how responsive demand will be to a change in price. A) Price elasticity B) Break-even pricing C) The demand curve D) Target costing E) Supply Answer: A Diff: 1Page Ref: 304 Skill: Concept Objective: 10-4 68) If demand hardly changes with a small change in price, we say the demand is ________. A) variable B) inelastic C) value-based D) at break-even pricing E) market penetrating Answer: B Diff: 2Page Ref: 304 Skill: Concept Objective: 10-4 69) If demand changes greatly with a small change in price, we say the demand is ________. A) variable B) inelastic C) value-based D) elastic E) fixed Answer: D Diff: 1Page Ref: 304 Skill: Concept Objective: 10-4 70) Price elasticity of demand is ________ divided by ________. A) percent change in quantity demanded; percent change in price B) demand; price C) percent change in price; percent change in quantity demanded D) the going price; the asking price E) none of the above Answer: A Diff: 2Page Ref: 304 Skill: Concept Objective: 10-4 71) Buyers are less price sensitive in all of the following situations EXCEPT ________. A) when the product they are buying is unique B) when the product they are buying is in high demand C) when substitute products are hard to find D) when the total expenditure for a product is high relative to their income E) when the product is a specialty product Answer: D Diff: 2Page Ref: 304 Skill: Concept Objective: 10-4 72) The less ________ the demand, the ________ it pays for the seller to raise the price. A) determined; less B) elastic; more C) elastic; less D) constant; more E) none of the above Answer: B Diff: 3Page Ref: 304 Skill: Concept Objective: 10-4 73) Each of the following economic factors can have a strong impact on a firms pricing strategy EXCEPT ________. A) an economic boom B) the resellers reaction to price changes C) an economic recession D) inflation E) interest rates Answer: B Diff: 2Page Ref: 305 Skill: Concept Objective: 10-4 74) A company should set prices that will allow ________ to receive a fair profit. A) resellers B) producers C) consumers D) the elderly E) competitors Answer: A Diff: 2Page Ref: 305 Skill: Concept Objective: 10-4 75) When companies set prices, the government and social concerns are two ________ affecting pricing decisions. A) external factors B) internal factors C) economic conditions D) demand curves E) temporary influences Answer: A Diff: 1Page Ref: 305 Skill: Concept Objective: 10-4 76) Amos Zook, an Amish farmer, sells organically grown produce. Often he will trade some of his produce for dairy products produced by other Amish farmers. The sum of the values that others exchange is called a ________. A) price B) cost-plus price C) dynamic price D) common value price E) penetration price Answer: A Diff: 1Page Ref: 290 AACSB: Reflective Thinking Skill: Application Objective: 10-1 77) Trader Joes offers an assortment of exclusive gourmet products at impossibly low prices. These prices are not limited-time offers or special discounts. Instead, they reflect Trader Joes ________ strategy. A) everyday low pricing B) cost-plus pricing C) dynamic pricing D) value-based pricing E) cost-based pricing Answer: A Diff: 2Page Ref: 293 AACSB: Reflective Thinking Skill: Application Objective: 10-2 78) Jimmys Hardware, an independent local retailer, is losing business to Wal-Mart. This is most likely because he cannot match Wal-Marts pricing strategy of ________. A) EDLP B) EFGF C) fixed prices D) negotiated pricing E) skimming pricing Answer: A Diff: 2Page Ref: 293 AACSB: Analytic Skills Skill: Application Objective: 10-2 9) When McDonalds and other fast food restaurants offer value menu items at surprisingly low prices, they are using ________. A) break-even pricing B) target profit pricing C) value pricing D) cost-plus pricing E) bundling Answer: C Diff: 1Page Ref: 293 AACSB: Analytic Skills Skill: Application Objective: 10-2 80) Consumers who have less time and patience for watching for supermarket specials and clipping cou pons would most likely prefer ________. A) variable pricing B) high-low pricing C) EDLP D) break-even pricing E) value-based pricing Answer: C Diff: 3Page Ref: 293 AACSB: Analytic Skills Skill: Application Objective: 10-2 81) Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games. This is an example of ________. A) good-value pricing B) add-on pricing C) product-support pricing D) value-added pricing E) cost-based pricing Answer: D Diff: 2Page Ref: 293 AACSB: Reflective Thinking Skill: Application Objective: 10-2 82) The long-run average cost curve (LRAC) helps the producer understand which of the following? A) It shows how large a business should be, to be most efficient. B) It deals mainly with competitors prices. C) It deals mainly with external factors. D) all of the above E) none of the above Answer: A Diff: 2Page Ref: 296 AACSB: Analytic Skills Skill: Application Objective: 10-3 83) Assume a manufacturer with fixed costs of $100,000, a variable cost of $10, and expected sales of 50,000 units wants to earn a 20-percent markup on sales. What is the manufacturers markup price? A) $14 B) $15 C) $18 D) $18. 50 E) none of the above Answer: B Diff: 3Page Ref: 297 AACSB: Analytic Skills Skill: Application Objective: 10-3 84) General Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment. This approach is called ________. A) value-based pricing B) going-rate pricing C) cost-plus pricing D) low-price image E) target-profit pricing Answer: E Diff: 2Page Ref: 298 AACSB: Reflective Thinking Skill: Application Objective: 10-3 85) A company faces fixed costs of $100,000 and variable costs of $8. 00/unit. They plan to directly sell their product to the market for $12. 00. How many units must they produce and sell to break even? A) 20,000 B) 25,000 C) 40,000 D) 50,000 E) not enough information to calculate Answer: B Diff: 2Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 6) Ecstasy Pharmaceuticals faces fixed costs with their new drug of $1,000,000. The company sells the drug in bottles of 50 pills for $10. 00. They estimate that they must sell 200,000 bottles to break even. What is the total cost to produce a bottle of 50 pills? A) $2. 50 B) $5. 00 C) $6. 00 D) $7. 50 E) not enough information to calculate Answer: B Diff: 3Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 87) A manufacturer is trying to determine its break-even volume. With fixed costs of $100,000, a variable cost of $10, and expected sales of 50,000 units, what should the manufacturers unit cost be to break even? A) $10 B) $12 C) $16 D) $20 E) none of the above Answer: B Diff: 3Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 88) As a manufacturer decreases price, ________ volume increases. A) target B) break-even C) cost-plus pricing D) total cost E) sales Answer: B Diff: 3Page Ref: 299 AACSB: Analytic Skills Skill: Application Objective: 10-3 89) PG surveyed the market and identified an unserved segment of electric toothbrush market. Using these results, they created Spinbrush. The unorthodox order of this marketing mix decision is an example of ________. A) competition-based pricing B) cost-plus pricing C) target costing D) value-based pricing E) penetration pricing Answer: C Diff: 2Page Ref: 300 AACSB: Reflective Thinking Skill: Application Objective: 10-4 90) PoolPak produces climate-control systems for large swimming pools. The companys customers are more concerned about service support for maintaining a system than its initial price. PoolPak may use this knowledge to become more competitive through ________. A) target costing B) value pricing C) cost-plus pricing D) a nonprice position E) skimming pricing Answer: D Diff: 2Page Ref: 300 AACSB: Reflective Thinking Skill: Application Objective: 10-3 91) By pledging to be a leader in providing clean, renewable energy sources and developing products and services that help consumers protect the environment, Green Mountain Power competes successfully against cheaper brands that focus on more price-sensitive consumers. Green Mountain Power has the firm belief that even kilowatt-hours can be ________. A) cost-plus priced B) a demand curve C) differentiated D) value-based priced E) none of the above Answer: C Diff: 3Page Ref: 300 AACSB: Analytic Skills Skill: Application Objective: 10-4 92) In Vin del Mar, Chile, there are a dozen stores specializing in selling the same quality of seafood products on one street. An individual store dare not charge more than the going price without the risk of losing business to the other stores that are selling the fish at a common price. This is an example of what type of market? A) pure competition B) monopolistic competition C) oligopolistic competition D) pure monopoly E) socialist Answer: A Diff: 2Page Ref: 302 AACSB: Reflective Thinking Skill: Application Objective: 10-4 93) Ascot Tires has decided to decrease its prices. The company can expect that ________ for their product will increase. A) cost-plus pricing B) value-based pricing C) demand D) the experience curve E) competition Answer: C Diff: 1Page Ref: 303 AACSB: Reflective Thinking Skill: Application Objective: 10-4 94) If Canon Camera Company follows a high-price, high-margin strategy, what will competitors such as Nikon, Minolta, and Pentax most likely do? A) They will go out of business. B) They will want to compete against Canon. C) They will advertise less. D) They will bundle their products. E) none of the above Answer: B Diff: 2Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 95) If Canon Camera Company follows a low-price, low-margin strategy for a product, what will competitors most likely do? A) They will not be able to compete or may leave the market. B) They will want to compete against Canon. C) They will advertise less. D) They will advertise more. E) none of the above Answer: A Diff: 3Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 96) Companies are fortunate to have demand that is more ________ because they may be able to set higher prices. A) elastic B) external C) internal D) inelastic E) fixed Answer: D Diff: 2Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 97) If demand falls by 1 percent when price is increased by 2 percent, then ________. A) elasticity is —1/2 B) demand is inelastic C) demand is elastic D) buyers are not price sensitive E) A and B Answer: E Diff: 3Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 Refer to the scenario below to answer the following questions. Alden Manufacturing produces small kitchen appliances? blenders, hand mixers, and electric skillets? under the brand name First Generation. Alden attempts to target newlyweds and first-time home buyers with this brand. In considering that most young households have limited financial resources, Alden has attempted to engage in target costing. In doing this, Milt Alden stated, we have better control over keeping price right in line with customers. Alden manufactures a three-speed blender, its top seller, and a five-speed blender. The hand mixers are manufactured in two styles? a small hand-held mixer with two rotating beaters and a similar style that comes with an optional stand and attached mixing bowl. Aldens temperature-controlled skillets are manufactured in one style with three color options. Our product offerings are narrower, Milt Alden added, but our line workers know each product like the back of their hands. This allows us to produce superior products while holding our prices low. 98) Milt Alden says that his line workers know each product like the back of their hands, and that this knowledge helps the company keep its prices low. This indicates that Alden Manufacturing most likely uses w hich of the following strategies? A) cost-plus pricing B) value-based pricing C) the experience curve D) cost-based pricing E) target profit pricing Answer: C Diff: 2Page Ref: 296 AACSB: Analytic Skills Skill: Application Objective: 10-2 99) Milt Alden uses a target costing strategy. Which of the following is he most likely to do in executing this strategy? A) base his price on competitors prices B) use everyday low pricing C) use a break-even chart to determine pricing D) start with customer-value considerations E) start by determining the costs of a new product Answer: D Diff: 2Page Ref: 300 AACSB: Analytic Skills Skill: Application Objective: 10-4 100) If Alden raises the price on the handheld mixer by 2 percent and quantity demanded falls by 10 percent what is the price elasticity of demand? A) —5 B) —8 C) —12 D) 5 E) 12 Answer: A Diff: 3Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 101) When faced with price competition cutting prices is often not the best answer. Answer: TRUE Diff: 2Page Ref: 293 AACSB: Analytic Skills Skill: Application Objective: 10-1 102) Prices have a direct impact on a companys bottom line. Answer: TRUE Diff: 1Page Ref: 290 Skill: Concept Objective: 10-1 103) Demand and consumer value perceptions set the floor for prices. Answer: FALSE Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 104) Product costs set a floor to the price; consumer perceptions of the products value set the ceiling. Answer: TRUE Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 105) Value-based pricing is being used when costs vary directly with the level of product. Answer: FALSE Diff: 3Page Ref: 291 Skill: Concept Objective: 10-2 106) Value-based pricing uses the companys perception of value. Answer: FALSE Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 107) Value-based pricing is the reverse of cost-based pricing. Answer: TRUE Diff: 2Page Ref: 291 Skill: Concept Objective: 10-2 108) Using value-based pricing, a marketer would not design a product and marketing program before setting the price. Answer: TRUE Diff: 3Page Ref: 291 AACSB: Analytic Skills Skill: Application Objective: 10-2 109) EDLP is very similar to high-low pricing. Answer: TRUE Diff: 2Page Ref: 293 Skill: Concept Objective: 10-2 110) Overhead cost is another term for fixed cost. Answer: TRUE Diff: 1Page Ref: 295 Skill: Concept Objective: 10-3 111) Cost-based pricing relies on consumer perception of value to drive pricing. Answer: FALSE Diff: 2Page Ref: 295 Skill: Concept Objective: 10-3 112) Average unit cost increases with accumulated production experience. Answer: FALSE Diff: 1Page Ref: 296 Skill: Concept Objective: 10-3 13) An upward-sloping experience curve is beneficial for a company. Answer: FALSE Diff: 3Page Ref: 297 Skill: Concept Objective: 10-3 114) The simplest pricing method is cost-plus pricing, which involves adding a standard markup to the cost of the product. Answer: TRUE Diff: 2Page Ref: 297 Skill: Concept Objective: 10-3 115) Markup pricing is popular because prices tend to be similar and p rice competition is thus minimized. Answer: TRUE Diff: 2Page Ref: 298 Skill: Concept Objective: 10-3 116) Target profit pricing is used when a firm tries to determine the price at which it will break even or make the profit it is seeking. Answer: TRUE Diff: 3Page Ref: 298 Skill: Concept Objective: 10-3 117) A break-even chart shows the total cost and total revenue expected at various sales volume levels. Answer: TRUE Diff: 2Page Ref: 298 Skill: Concept Objective: 10-3 118) Environmental elements are categorized as external factors that affect pricing decisions. Answer: TRUE Diff: 2Page Ref: 299 Skill: Concept Objective: 10-4 119) In a pure monopoly, the market consists of one seller. Answer: TRUE Diff: 1Page Ref: 303 Skill: Concept Objective: 10-4 120) Nonregulated monopolies always charge the full price because they do not fear attracting competition. Answer: FALSE Diff: 2Page Ref: 303 AACSB: Analytic Skills Skill: Application Objective: 10-4 121) Marketers may learn a few simple rules that apply equally to all price-demand relationships. Answer: FALSE Diff: 2Page Ref: 303 AACSB: Analytic Skills Skill: Application Objective: 10-4 122) The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged. In normal cases, the higher the price, the lower the demand. Answer: TRUE Diff: 1Page Ref: 303 Skill: Concept Objective: 10-4 123) If demand changes greatly with price, we say the demand is inelastic. Answer: FALSE Diff: 2Page Ref: 304 Skill: Concept Objective: 10-4 124) The more elastic the demand, the more it pays for the seller to raise the price. Answer: FALSE Diff: 2Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 125) Consumers will base their judgments of a products value on the prices that competitors charge for similar products. Answer: TRUE Diff: 2Page Ref: 304 Skill: Concept Objective: 10-4 126) Pricing and price competition account for the number-one problem facing many marketing executives. What are some of the frequent problems that companies encounter? Answer: The pricing environment changes at a fast pace, and value-seeking customers have put increased pricing pressure on many companies. However, companies are often too quick to reduce prices in order to get a sale rather than convincing buyers that their products are worth a higher price. A companys pricing, in addition, is often too cost-oriented rather than customer-value oriented. Companies have prices that are not revised often enough to reflect market changes. Another common problem is pricing that does not take the rest of the marketing mix into account. Diff: 2Page Ref: 289 AACSB: Analytic Skills Skill: Application Objective: 10-1 127) Discuss the importance of consumer perceptions of value and costs to setting prices. Answer: Customer perceptions of value set the upper limit for prices, and costs set the lower limit. However, in setting prices within these limits the company must then consider other internal and external factors. Internal factors affecting pricing include the companys overall marketing strategy, objectives, and marketing mix, as well as other organizational considerations. External factors include the nature of the market and demand, competitors strategies and prices, and other environmental factors. Diff: 1Page Ref: 291 AACSB: Analytic Skills Skill: Application Objective: 10-2 128) Explain how break-even analysis can be used for target profit pricing. Answer: The firm determines the price at which it will break even. The firm can also add the target profit to the fixed costs and then determine the new, break-even point, which now includes the target profit. Pricing decisions can be made by examining where the total revenue and total cost curves intersect on a break-even chart at different price points and sales volume. Diff: 2Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 29) Identify and define the internal factors affecting a firms pricing decisions. Answer: The pricing strategy is largely determined by the companys target market and positioning objectives. Pricing decisions affect and are affected by product design, distribution, and promotion decisions. Costs set the floor for the companys price, which must cover all the costs of making and selling t he product, plus a fair rate of return. In order to coordinate pricing goals and decisions, management must decide who within the organization is responsible for setting price. Diff: 2Page Ref: 299 AACSB: Analytic Skills Skill: Application Objective: 10-4 130) Compare pure competition with oligopolistic competition. Answer: Under pure competition, the market consists of many buyers and sellers trading in a uniform commodity. No single buyer or seller has much effect on the going market price. Under oligopolistic competition, the market consists of few sellers who are highly sensitive to each others pricing and marketing strategies. The product can be uniform or nonuniform. There are few sellers because it is difficult for new sellers to enter the market. Each seller is alert to competitors strategies and moves. Diff: 3Page Ref: 302-303 AACSB: Analytic Skills Skill: Application Objective: 10-4 131) Compare oligopolistic competition with a pure monopoly. Answer: Under oligopolistic competition, the market consists of a few sellers who are highly sensitive to each others pricing and marketing strategies. There are few sellers because it is difficult for new sellers to enter the market. Under a pure monopoly, the market consists of one seller. Pricing is handled differently in each case. The seller may be a government monopoly, a private nonregulated monopoly, or a private regulated monopoly. Diff: 3Page Ref: 302-303 AACSB: Analytic Skills Skill: Application Objective: 10-4 32) Describe what a demand curve is and explain how it helps businesses. Answer: It estimates consumer demand at different prices. In a monopoly, the demand curve shows the total market demand resulting from different prices. If the company faces competition, its demand at different prices will depend on whether competitors prices stay constant or change with the companys own prices. Diff: 2Page Ref: 303 AACSB: Analytic Skills Skill: Application Objective: 10-4 133) What does price elasticity reveal about a product? Answer: Price elasticity is a measure of the sensitivity of demand to changes in price. If demand hardly changes with a small change in price, we say the demand is inelastic. If demand changes greatly, we say the demand is elastic. Diff: 1Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4 134) The company must consider the impact its prices will have on resellers. Identify three ways the company can help resellers. Answer: The company, first of all, should set prices that give resellers a fair profit. The company should also encourage their support. Finally, the company should help resellers to sell the product effectively. Diff: 1Page Ref: 305 AACSB: Analytic Skills Skill: Application Objective: 10-4 135) When setting prices, the company must consider its external environment. Describe four parts of the external environment and how they affect businesses. Answer: Economic conditions affect both the costs of producing a product and consumer perceptions of the products price and value. The company should encourage and support resellers and help them to sell the product effectively. The government, in the form of local, state, and federal laws, is another important influence on pricing decisions. Social concerns impact pricing, especially when a companys short-term sales, market share, and profit goals may have to be tempered by broader societal considerations. Diff: 1Page Ref: 305 AACSB: Analytic Skills Skill: Application Objective: 10-4 136) How important is price among the elements of the marketing mix? Answer: In recent decades, nonprice factors have gained increasing importance. However, price still remains one of the most important elements determining a firms market share and profitability. Diff: 2Page Ref: 290 AACSB: Analytic Skills Skill: Application Objective: 10-1 37) Why is price considered to be one of the most flexible elements of the marketing mix? Answer: Price can be changed quickly. Diff: 1Page Ref: 290 AACSB: Analytic Skills Skill: Application Objective: 10-1 138) Explain the concept of a price floor. Answer: A price floor is the lowest price charged at which the company still earns some profits. Diff: 2Page Ref: 291 AACSB: Analytic Skills Skill: Applicatio n Objective: 10-2 139) Explain the concept of a price ceiling. Answer: A price ceiling is the highest price charged at which there is still some consumer demand. Diff: 2Page Ref: 291 AACSB: Analytic Skills Skill: Application Objective: 10-2 140) What must a company using value-based pricing find out about its customers? Answer: They must determine the specific value that individual buyers assign to different competitive offers. Diff: 3Page Ref: 292 AACSB: Analytic Skills Skill: Application Objective: 10-2 141) Explain good-value pricing. Answer: With good-value pricing, a marketer offers just the right combination of quality and good service at a fair price. Diff: 1Page Ref: 293 AACSB: Analytic Skills Skill: Application Objective: 10-2 142) What must a firm do to retain pricing power? Answer: To retain pricing power, a firm must retain of build the value of its market offering. Diff: 2Page Ref: 293 AACSB: Analytic Skills Skill: Application Objective: 10-2 143) What costs make up a products total cost? Answer: Fixed costs and variable costs make up total cost. Diff: 1Page Ref: 296 AACSB: Analytic Skills Skill: Application Objective: 10-3 144) Explain the significance of a downward-sloping experience curve. Answer: Not only will the companys unit production cost fall, but it will fall faster if the company makes and sells more during a given time period. Diff: 3Page Ref: 297 AACSB: Analytic Skills Skill: Application Objective: 10-3 145) A marketers fixed costs are $400,000, the variable cost is $16, and they expect the product to sell for $24. What is their break-even point in units? Answer: The break-even point in units is 50,000 units. Diff: 3Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 146) A marketers fixed costs are $400,000, the variable cost is $16, and they expect the product to sell for $24. What is their break-even point in dollar sales? Answer: The break-even point in dollar sales is $1,200,000. Diff: 3Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 147) A marketers fixed costs are $400,000, the variable cost is $16, and they expect their product to sell for $24. If the marketer has sales of $1,440,000, what is their profit on this product? Answer: The profit is $80,000. Diff: 3Page Ref: 298 AACSB: Analytic Skills Skill: Application Objective: 10-3 148) Who typically sets prices in small companies? In large companies? Answer: Top management sets prices in small companies, whereas divisional or product line managers typically set prices in large companies. Diff: 2Page Ref: 300 AACSB: Analytic Skills Skill: Application Objective: 10-4 149) Explain a pure monopoly. Answer: The market consists of one seller that dominates the market. Diff: 2Page Ref: 303 AACSB: Analytic Skills Skill: Application Objective: 10-4 150) If demand is elastic, will sellers consider lowering their prices? Explain. Answer: Yes. A lower price will produce more needed revenue, as consumers will respond to the change in price and buy more. Diff: 2Page Ref: 304 AACSB: Analytic Skills Skill: Application Objective: 10-4

10 effective networking conversation starters

10 effective networking conversation starters Gone are the days that you just punch a clock from 9 to 5 on Monday through Friday and forget about work when you’re not there. These days, if you’re serious about your career- regardless of what field you’re in- it should always be something you’re working on. This includes managing your professional social media like LinkedIn, joining professional associations in your field and attending events, and working to build your network of colleagues and contacts to help you achieve your goals and climb your career ladder to the very top. Whether you’re currently employed or on the job hunt, networking has become an absolutely essential part of a career toolkit. There’s just too much fierce competition from qualified and capable individuals at all levels who have realized that no one is an island and if they want to set themselves up for success, they need to network and maintain career contacts and leverage them to improve their positions- and you can either join in or get left behind.The Balance published an article that included some compelling stats that highlight the value of networking:70 percent of people in 2016 were hired at a company where they had a connection.80 percent of professionals consider professional networking to be important to career success.35 percent of surveyed professional say that a casual conversation on LinkedIn Messaging has led to a new opportunity.61 percent of professionals agree that regular online interaction with their professional network can lead to the way into possible job opportunities.Okay, so hopefully by now you recognize the value of networking in order to enhance your career trajectory. But are you any good at it? The truth is, some folks are natural schmoozers and seem to be able to network wherever they find themselves, while others among us find it a bit more of a challenge and struggle at times to network effectively. Which camp are you in?Whether you’re a world champi on networker, a total networking newbie, or somewhere in-between, we can all benefit from a little help and some fresh ideas for meeting new people in our industry and making meaningful and lasting connections. It all comes down to how you handle the initial contact- the moment you approach or are approached by a potential contact and unleash your conversation starter- will you shine or shrink?Consider taking advantage of one of the following 10 starters when you find yourself in a potential networking situation.1. Hi, what brings you here today?- Here’s a simple, friendly, and direct question that you can comfortably bring up to any potential contact without throwing them off guard via a difficult curveball question. Although this starter works best at industry-focused events, you can feasibly modify it for nearly any situation.2. What do you do for a living?- Another simple and straightforward conversation starter that can really get the ball rolling if you follow up with g enuine interest in what the other person has to say. Plus, getting to know what the other person does can help you quickly determine how this individual could potentially fit in your networking orbit, which has its obvious benefits.3. Where are you from originally?- It’s almost a universal truism that most people are comfortable with and enjoy talking about their home towns, and it can really open up lots of interesting avenues for continued conversation. You’ll also score some bonus points if you have a common background.4. Hey, do you happen to have any recommendations for restaurants [or bars, or coffee shops] in this neighborhood?- If you’re new in town, or just new to the area in which you’re in, consider asking for a recommendation for something nearby. If the conversation goes well, you can always invite the person along to wherever they recommended.5. How did you hear about this event?- Most people enjoy debriefing about an event they’ve at tended, even while they’re still there. Reach out to someone to get their perspective on the event you’re attending, whether it’s a professional event or a social activity, and be ready for a floodgate of conversation.6. How are you enjoying this [insert event]?- This is a slight variation of the previous conversation starter, and once again a friendly way to engage a new potential contact and initiate a possibly fruitful conversation. Again, the key is to be genuinely interested in the response; people usually know when they’re dealing with someone sincere or not, and the reaction you get will likely be based on how you’re perceived during the early stages of the conversation.7. Hi, I really like your [article of clothing].- What better way to break the ice than with a well-placed compliment? If handled correctly, you can count on the flattered recipient to go into some detail about the item being discussed, and you can take it from there.8. What do you think of this [venue/space/etc.]?- This one works especially well if you’re in an interesting or historical event space, or if there’s some memorable or unusual aspect to the place you’re in. This one’s a pure conversation starter- use it just to break the ice and then move on to other topics.9. I’ve been so absorbed with the latest story about [insert current news event], how about you?- This is a little bit of a tricky one- although engaging someone in a conversation about a topical story in the news can lead to an engaging back and forth, be careful about choosing a â€Å"hot-button† or polarizing issue- if you espouse a strong opinion that the other person doesn’t agree with, you may be dooming your chances of making a long-lasting contact. Bottom line- choose your news event carefully.10. I’m always a little nervous at the beginning of the networking events, especially if I don’t know anyone.- Most people app reciate a little honesty when talking to someone new, and the truth is, if they’re feeling nervous than your mentioning this might help put them at ease and earn you some points with a new potential contact. The humble approach can work wonders, provided you come across as being sincere.There you have it- 10 surefire networking conversation starters that you can use to your advantage when the opportunity arises. After you break the ice, where you take the conversation from there is up to you. Good luck!

The voices of silence by Bel Mooney Essays

The voices of silence by Bel Mooney Essays The voices of silence by Bel Mooney Paper The voices of silence by Bel Mooney Paper The novel The voices of silence by Bel Mooney is set in the country of Romania during the last months of the regime of the dictator Nicolae Ceausescu. The story is told from the viewpoint of Flora Popescy, a thirteen-year old school girl who lives with her parents Rodika and Constantin in the capital city of Bucharest. In chapters one to three we are given an immediate insight into the harshness of life under an oppressive government. Floras family lives in great poverty. We realise from Floras dream that even bananas are a delicacy, and a seven-year-old boy requested a banana for his big birthday present. Floras family lives in a twenty-story block, which was due to have new lifts fitted but as the government ran out of money they left the shafts on view. Between each block theres only rough terrain as there is no gardens or even grass. When rain falls puddles collect easily, as there is no drainage system just unfinished ground. Flora describes her flat as tiny with only two rooms, a tiny kitchen and bathroom. The sofa in the flat is her parents double bed at night. It is a damp flat which was evident from Floras description of the dampness that bubbled and sprouted on the walls. Also they have an old wooden draining board which is cracked down the middle. They heat the flat with paraffin but it isnt enough to keep the flat warm. Each day at dawn they have to queue for bread and milk. Sometimes Tata would return with an old bag containing four/five apples, or bacon or just a lump of cheese, which made any of these things a real feast and by our standards shows how what a poor state they really live in. For Floras birthday it was such a treat for her to be served fresh bread and in addition she had two pieces of salami and a little strip of cheese and a fried egg. Flora had one birthday card, which was obviously appreciated because she took great care looking at the decorations the pictures and colours. Also Flora had one present rapped in the same paper their food was wrapped in, yet her mum had drawn and painted moons and stars on it. Flora had a scarf as her only present, she really appreciated it because it was an extravagance not a necessity. Daniel Ghiban had joined the school on the first day back. At lunchtime everyone crowded round him because of what he had on his sandwiches which was proper meat on soft bread and cake. On that day Floras school bag had broken again, she mentioned her mum had already mended it five times before, another example that they cant afford new possessions. Daniel Ghiban stopped to help her pick her stuff and sharpened her pencil with a real sharpener. Flora told Daniel that usually she sharpens with a knife. Daniel wore real jeans, a blue jumper with the schools badge on and trainers, he really stood out from the others because Flora described everyone in school looked the same Drab dark clothes From the opening chapters of the book we also learn a great deal about the political regime. President Ceausescu is a cruel dictator who lives in luxury, while keeping his people in poverty. In chapters two, on Floras birthday, she and her parents go into the city to look at the presidents dreadful, lavish, giant new palace, Her father Constantin seethes anger but dare not voice his opinions aloud in public. We learn very quickly that the citizens of Romania are spied on and that the government tries to control their thoughts and actions. Floras account of how the pupils chant their loyalty to Romania and the beloved president on a daily basis is evidence of the political indoctrination in school. From a early age Flora tells they learned from songs that the president was the father and his wife Elena was the mother. Some examples of characters been nervous of talking about the government are when mama tried shushing Tata from explaining why they are deprived from having certain things. Also Flora was worried when Alys called Old Ceausecu an old monster. This was evident because Flora tried shushing Alys and looking over her soldier to see if anybody had heard. Another point about this is the fact that Daniel was not supposed to tell his friends how he had managed to have decent food, he told his friends in a whisper, which later made Flora nervous of running footsteps behind her. Constantin was suspicious that Daniel had arrived unexpectedly at their flat bringing MMs for Floras birthday. Father said It was not Right because even though he was a school friend he was a stranger, adding people in Romania have to look after themselves and it wasnt normal to send presents to others unless they wanted something in return. From my reading of the novel so far, I understand life in a country like Romania must be very miserable. I think that the thing I would hate most of all would be the fact that you couldnt have any real friend or someone to trust as you have to live a life of secrecy and whispers because you never know who might be listening in on you.

Peer pressure Assignment Example | Topics and Well Written Essays - 1000 words

Peer pressure - Assignment Example This pressure is not physical pressure or coercion. A person is just compelled to do what the peer group is doing. This happens on a subliminal level and the person feels compelled to join the act even if he or she disagrees. It is a form of persuasion but the person performs the act unwillingly. This phenomenon comes in many forms and mostly teenage students fall prey to this. They do stuff which their friends are doing just for social acceptance. They personally are not willing to do the act but they are mentally forced. People with weak personalities are more susceptible to peer pressure. They quickly give in to pressure of social groups because they want to be the part of them. Smoking is something that is mostly done under peer pressure. The problem with peer pressure is that it comes in a very subtle form. Smoking is an addictive behavior so it just needs a trigger. After a few times the person gets used to smoking and this is one of dangers of peer pressure. The dangers of peer pressure also extend to other forms of addictions and attitudes or actions. Peer pressure is not limited to schools and teenagers. The human need of social acceptance is great. We get in groups because we want to protect ourselves. In groups we feel a sense of protection. Human beings try to hide in groups because they are afraid their deficiencies are disclosed in front of others. The influence of positive remarks or social acceptance is great on human psychology. It raises our self esteem and makes us believe in ourselves. A few positive comments about shoes or clothes can make our day and bad comments are not appreciated by anyone. Why do we behave in such a manner? We do so because we like being liked. We want our friend around us to love us. We want attention and this is another reason why we feel prey to peer pressure. We usually spend our time with different groups and sub groups like family, friends and office

Issues, Challenges and Strategies in Successful Implementation of an Essay - 1

Issues, Challenges and Strategies in Successful Implementation of an HRIS Project - Essay Example Employee recruitment, retention, and motivation are the significant factors that determine the productivity and growth of companies. Hence, immediate access to information regarding the potential candidates and current human resource capital is essential for the effective functioning of a firm. Human resource is the most valuable asset of every firm. HRIS is the recent development which has been widely accepted in organizational functions. However, careful analysis and strategic approach are essential to meet the subsequent issues and challenges. The past few decades have witnessed tremendous changes and innovations in the infrastructure and HR management functions of organizations. Scientific approach and technological advancement have intensified business operations more than ever before. Modern organizations pay great attention to employee retention and other HR functions. Modern technological backup has enabled companies to store every valuable data regarding the employees in its specially designed software. This information system is highly integrated with the enterprise planning (ERP) of a company. The complexity of data collection, reporting, and analysis can be resolved by the effective implementation of HRIS. It not only helps the HR decision-making process but also ensures the company’s legal compliance by maintaining and updating every piece of information. In addition to the advantages of HRIS, I tend to discuss certain challenges and issues that are associated with the implementation of an HRIS project. ERP is the broad system that integrates all information and process in an organization such as manufacturing, HR, supply, financials, customer relations etc; whereas, HRIS is exclusively meant for Human Resource information. When a company plans its ERP project, it must include each and every piece of information related to its overall function.

The Ethical Dimension of Climate Change Essay Example | Topics and Well Written Essays - 250 words

The Ethical Dimension of Climate Change - Essay Example Climate change manifests in skewed vulnerabilities in terms of contributors, affected nations, repercussions, and pattern (Gardiner & Hartzell-Nichols, 2012). Martin firmly believes that the current generation holds the solution to the climate change problem, especially when it comes to ecological and generational justice. He states that all nations have the moral responsibility of protecting the earth through formulating international policies. He states so because any nation that contributes to climate change breaches some standards of responsibility and fairness that spanning generations and nations. In this regard, Martin asserts that the world, particularly developed nations, ought to inculcate responsibility and fairness as serious ethical concerns in climate change. Gardiner,  S.  M.  &  Hartzell-Nichols,  L.  (2012). Ethics and Global Climate Change. Nature Education Knowledge, 3(10), 5. Retrieved from

Financial And Market Analysis Of Premium Economy Business Commerce Essay

Financial And Market Analysis Of Premium Economy Business Commerce Essay In the airlines industry, in order to achieve success in the market competition, superior market players have to generate a good understanding about the underlying demands in the market. Traditionally, airlines provide three major flight classes to the customers, namely economy, business and first class flight and services. With the prosperous economic development and the increasing demand in air travel, the idea of premium economy is introduced and it is now being widely accepted by the airline industry. Premium economy, or maybe called differently by different airline companies, generally offers a wider space and more premium service to passengers, and accordingly, requires a higher ticket price. The purpose of this paper is to analyze the current performance outcomes and the market potential of premium economy business. The first question will be answered with the comparison and analysis of five selected airline companies which have already launched premium economy business during operation. These five airline companies include Qantas, United Airways, British Airways, Virgin Atlantic Airbus, and ANA. Then based on the performance outcome comparison, the second question will be answered with a further market demands and input-output analysis. 2.0 Premium economy business in the five selected airline companies Premium economy, a niche market strategy widely introduced in long haul market of business travel, is not standardized. In United Airways, the idea of premium economy is called Economy Plus; while in British Airways, it is called World Traveler Plus. Meanwhile, premium economy business is being carried out differently in the five selected airline companies. Some may only provide extra legroom with other service no more different from standard economy; while other airline companies may emphasize a clear distinction from traditional business by introducing priority boarding, excellent on board service and entertainment, etc. 2.1 Qantas premium economy business Premium Economy is available on all Qantas A380 aircraft and selected B747-400 aircraft with selected flights from Sydney to Los Angeles, London, Singapore, Bangkok, Johannesburg, Hong Kong, Buenos Aires, San Francisco and New York, and from Melbourne to Los Angeles, London, Singapore and Hong Kong. In Qantas premium economy project, passengers are entitled to benefits such as priority check-in, extra legroom for stretch out and relax, personal TV, laptop power for all premium economy seats, and priority in disembarkation. Qantas has introduced three types of aircraft and twelve scheduled flights to provide premium economy business. Detailed seat information is extracted and analyzed. Averagely, premium economy delivers a 2 extra inches of seat width, 7 extra inches of legroom. However, with an analysis into the seat number, it can be seen that premium economy business is not so widely introduced in Qantas. Averagely, seats for premium economy business just take up 9% of the total available seats in one flight. As to the ticket price for each class, generally, in Qantas, premium economy is generally 80% more expensive than standard economy. And the price for premium economy stays quite the same for the whole month, thus preventing discount for advanced bookings (Qantas, n.d.). 2.2 United Airways premium economy business Premium economy is widely available on 15 types of aircrafts in the United Airways. The flight routes are selected between a variety of North American destinations and Hawaii. In United Airways, premium economy is called as economy plus, which is not a separate class of service but differs from standard economy with up to 3 to 5 inches of extra legroom. Generally, seats for economy plus are located nearer to the front of the aircraft, so that passengers in this section will be served first. Benefits such as priority check-in, personal TV, laptop powers, or priority in disembarkation are not entitled to economy plus passengers. Averagely, premium economy delivers almost the same inches of seat width, 4 extra inches of legroom. With a look into the seat numbers, the total average seats available on these aircrafts are 210, and averagely, seats for premium economy business take up 23.7% (50 seats) of the total available seats. As to the ticket price for each class, generally, in United Airways, premium economy cost much the same with standard economy (United Airways, n.d.). 2.3 British Airways premium economy business Premium economy is called world travelers plus in British Airways, and it is available on 5 types of aircrafts and a variety of flight routes. In British Airways world travelers plus project, passengers are entitled to benefits such as priority check-in, extra legroom for stretch out and relax personal TV, laptop power, and priority in disembarkation. Averagely, premium economy delivers almost the same inches of seat width, 7 extra inches of legroom. With a look into the seat numbers, the total average seats available on these aircrafts are 268, and averagely, seats for premium economy business take up 11.5% (30 seats) of the total available seats. As to the ticket price for each class, generally, in British Airways, premium economy is generally 90% more expensive than standard economy (British Airways, n.d.). 2.4 Virgin Atlantic premium economy business Premium economy is available on 6 types of aircrafts and a variety of flight routes. In Virgin Atlantic premium economy project, passengers are entitled to benefits such as priority check-in, extra legroom for stretch out and relax personal TV, laptop power, and priority in disembarkation. Averagely, premium economy delivers a 4 extra inches of seat width, 7 extra inches of legroom. With a look into the seat numbers, the total average seats available on these aircrafts are 360, and averagely, seats for premium economy business take up 12.6% (45 seats) of the total available seats. As to the ticket price for each class, generally, in Virgin Atlantic, premium economy is generally 46% more expensive than standard economy (Virgin Atlantic, n.d.). 2.5 ANA premium economy business Premium economy is available on 5 types of aircrafts in ANA. The flight routes are selected from Nagoya to Taipei and Tianjin routes, Narita-Hong Kong route, Narita and North America as well as the NRT LHR route. In ANA, premium economy differs from standard economy by providing priority check-in, laptop powers, and priority in disembarkation. Averagely, premium economy delivers almost the same inches of seat width, 4 extra inches of legroom. With a look into the seat numbers, the total average seats available on these aircrafts are 257, and averagely, seats for premium economy business take up 12.3% (32 seats) of the total available seats. As to the ticket price for each class, generally, in ANA, premium economy cost much the same with standard economy (ANA, n.d.). 2.6 Comparison of the premium economy business With the introduction about the five selected airline companies premium economy business, it is noted that all the five companies have provided passengers with up to 7 inches of extra legroom. Additionally, except for United Airways, Qantas, British Airways, Virgin Atlantic, and ANA have provided extra benefits for check-in/out and on board service. Such benefits can save much time spent on travel and could leave passengers with a good service impression. However, such benefits are provided with the increase in operation costs. Moreover, the adoption levels of premium economy differentiated with each other to a great extent. Among the five airline companies, Qantas has the lowest percentage of premium economy seats to the total available seats at around 9%; while for United Airways, the percentage of premium economy seats to the total available seats is at the highest level around 23.7%. The diversification in product portfolio may generate the problem of cutting costs down. 3.0 Financial performance of the five selected airline companies As no specific revenue information on the premium economy business could be available from the companies released financial reports, comparison of the financial performance for the five airline companies would be carried out with theoretical analysis. For the airline industry, major airlines have long been troubled by the matter of tremendous fixed costs such as the repair and maintenance of the aircraft, overhead costs and the increasing costs of fuels. In order to cover such costs, airline companies need a great number of passengers to meet the break-even point. In calculating the break even points for each airline service product, the companies may generally follow the formulas below (Horngren, Sundem Stratton, 2002) Break even point (for output) = fixed cost / contribution per unit Contribution (p.u) = selling price (p.u.) variable cost (p.u) Break even point (for sales) = fixed cost / contribution (pu) ÃÆ'- selling price (pu) During operation, the companies will try to lower the break even points so that they can maximize their profits. In order to achieve this, companies can get down on the following aspects: control the fixed cost, increase the output units (loaded passengers), or increase the selling price. As to fixed cost control, it mainly involves improvement on internal control and management; while the pricing strategy will be mainly affected by the passenger market. 4.0 Product profitability analysis When making decisions on new product launches, the companies should assess the profitability of current product portfolio, and the potential profits which may be generated with a new product portfolio. Due to the fact that premium economy generally provides passengers with up to 7 inches of extra legroom and above 2 inches of extra seat width, the introduction of premium economy will inevitably lower the fixed cost amortization. However, if the implementation could generate more loaded passengers, then the decline in fixed cost amortization could be subsidized. The impact of decreased fix cost amortization could be measured by assuming that if the same level of product profits be generated, how many loaded passengers are required. With the figures calculated, a market analysis should be carried out to find out whether such target could be achieved. 5.0 Market acceptance and market potential Every individual in the global world could be potential customer to the player. However, due to limitations resulting from factors like geography, operation scales, cost and benefit principal, etc, the player has to narrow down onto series of segment markets and figure out its target customers, and then focus its marketing efforts and its merchandise on the selected areas (Kurtz, 2010). Information about target consumers backgrounds and their complex buying decision making process is an indispensable part of accurate market identification and positioning activity (Nicosia, 1966). The idea of premium economy is firstly introduced to address the increasing demand from business travel. Unlike traditional market strategy which emphasize heavily on price and cost, strategies for premium economy pays more attention to the product and service quality, as in many cases price is not the primary issue for the business traveler. With the help from advanced information technologies such as visual conferencing, instant messaging system, content management system, etc, business can be done with participants locating all around the world. However, when coming to circumstances under which face-to-face interaction is inevitable to the success of the business, air travel, for its convenience and time saving characteristics, will come as the first choice for business travelers. To such targeted business travelers, what they want most from the flight would generally be the comforts and time saving. Traditionally, the time spent on waiting for check-in/out procedures would almost be more than two hours, which may mean quite a huge time cost to the business. Moreover, exhausted by the uncomfortable sitting environment, passengers may take certain time to fresh up their spirit and energy. This may generally have negative impact on their performance. With the introduction of premium economy business, travelers are provided with more space in which they can stretch out regularly and release the pressure so that they will not feel tired after the journey. Moreover, with the priority in check-in and disembarkation, business travelers could save more time for other important issues. With the product being accepted in the market, it should also be figured out the potential market volume. According to the Civil Aviation Authority (CAA), in 1999, approximately 30 percent of passengers from London to New York were business travelers (1.14 million passengers) (Sky Trails Airline, Ltd, n.d.). If such percentage could be applied to other heated commercial flights, the total market potential could then be analyzed and the product profitability could be worked out accordingly. 6.0 Conclusion With the increasing demand of long haul travel and the increased consumptive power, the introduction of premium economy will become a popular and inevitable trend in the airline industry. In order to make a proper investment decision on product introduction, the airline companies should first work out the break even point of the new product, and then analyze whether such profit could be realized in the current market. Moreover, in introducing the product, the companies should also consider the characteristics and major demands of the passengers and then further tailor the products to their specific needs. List of references ANA, n.d., Premium Economy, viewed 17 August 2010, http://www.ana.co.jp/wws/uk/e/travelservice/reservations/special/py/index.html British Airways, n.d., World Traveler Plus, viewed 17 August 2010, http://www.britishairways.com/travel/world-traveller-plus/public/en_gb Horngren, C, Sundem, G Stratton, W 2002, Introduction to Management Accounting, Prentice Hall, London. Kurtz, DL 2010, Contemporary Marketing, 13nd edn, Thomson South-Western, Mason, Ohio. Nicosia, F 1966, Consumer Decision Processes, Prentice Hall, Englewood Cliffs. Quantas, n.d., International Premium Economy, viewed 17 August 2010, http://www.qantas.com.au/travel/airlines/international-premium-economy-class/global/en Sky Trails Airline, Ltd n.d., Business Plan, viewed 17 August 2010, http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-09/Airline-Company.html United Airways, n.d., Economy Plus, viewed 17 August 2010, http://www.united.com/page/article/0,6722,1314,00.html Virgin Atlantic, n.d., Premium Economy, viewed 17 August 2010, http://www.virgin-atlantic.com/en/cn/whatsonboard/premiumeconomy/index.jsp