1. Currently, Product Acre in the low segment has MTBF of 16,000 hours.   If MTBF is reduced to 14,000 hours, what would be the effect on material costs?   a. Material costs would increase by $ 0.60 per unit   b. Material costs would decrease by $ 0.60 per unit   c. Material costs would increase by $ 0.30 per unit   d. Material costs would decrease by $ 0.30 per unit

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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1. Currently, Product Acre in the low segment has MTBF of 16,000 hours.

 

If MTBF is reduced to 14,000 hours, what would be the effect on material costs?

 

a. Material costs would increase by $ 0.60 per unit

 

b. Material costs would decrease by $ 0.60 per unit

 

c. Material costs would increase by $ 0.30 per unit

 

d. Material costs would decrease by $ 0.30 per unit

 

2. Given customer needs in the High Segment, which is best way to compete in that segment?

 

a. Source of Competitive Advantage should be Product/Service Differentiation

 

b. Source of Competitive Advantage should be Cost Leadership

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