subject
Business, 03.08.2020 21:01 iaminu50

Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose a sales representative is trying to sell a company a new accounting system that will, with certainty, reduce costs by 10%. However, the customer has heard this claim before and believes there is only a 20% chance of actually realizing that cost reduction and a 80% chance of realizing no cost reduction. Assume the customer has an initial total cost of $600. According to the customer's beliefs, the expected value of the accounting system, or the expected reduction in cost, is $ . Suppose the sales representative initially offers the accounting system to the customer for a price of $36.00. The information asymmetry stems from the fact that the has less information about the efficacy of the accounting system than does the . At this price, the customer purchase the accounting system, since the expected value of the accounting system is than the price. Instead of naming a price, suppose the sales representative offers to give the customer the product in exchange for 50% of the cost savings. If there is no reduction in cost for the customer, then the customer does not have to pay. True or False: This pricing scheme alleviates some of the information asymmetry that is present in this scenario. True False

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 22.06.2019 10:00, caz27
Your uncle is considering investing in a new company that will produce high quality stereo speakers. the sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. what sales volume would be required to break even, i. e., to have ebit = zero?
Answers: 1
image
Business, 22.06.2019 13:40, moneytt2403
Computing equivalent units is especially important for: (a) goods that take a relatively short time to produce, such as plastic bottles. (b) goods with sustainability implications in their production processes. (c) goods that are started and completed during the same period. (d) goods that take a long time to produce, such as airplanes.
Answers: 2
image
Business, 23.06.2019 04:50, xTrippyBeach4201x
Which of the following results from the latest decision round is most important in providing guidance to company managers make in strategic moves and decisions to improve their companies competitiveness and rank among the top-performing companies in the current decision round
Answers: 3
image
Business, 23.06.2019 22:00, insomniacnana2
How do public goods limit a free market economy? a. they allow consumers to make only occasional economic decisions. b. they allow government to make some economic decisions. c. they allow consumers to make all of the economic decisions. d. they do not allow government to make any economic decisions.
Answers: 1
You know the right answer?
Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers t...

Questions in other subjects:

Konu
Mathematics, 04.02.2021 22:10