Differentiate between dynamic and fixed pricing
What will be an ideal response?
Throughout most of history, prices were set by negotiation between buyers and sellers. The fixed price policy—setting one price for all buyers—is a relatively modern idea that arose with the development of large-scale retailing at the end of the nineteenth century. Today most prices are set this way. However, some companies are now reversing the fixed pricing trend. They are using dynamic pricing, adjusting prices continually to meet the characteristics and needs of individual customers and situations. Dynamic pricing makes sense in many contexts. It adjusts prices according to market forces, and it often works to the benefit of the customer.
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Which of the following best describes trend analysis?
A) calculating key ratios to evaluate performance B) expressing each financial statement amount as a percentage of a budgeted amount C) comparing a company's financial statements with that of other companies D) expressing each year's financial statement amounts as a percentage of the base year amounts
Suppose a company selling in various country markets makes statements such as "we know what the customer wants, and he or she will have to pay for it." This is an indication of a(n) ________ approach to setting prices
A) ethnocentric B) polycentric C) regiocentric D) geocentric E) adaptation