Business, 10.09.2019 01:30 des7900

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 20%. however, the customer has heard this claim before and believes there is only a 10% chance of actually realizing that cost reduction and a 90% chance of realizing no cost reduction.
assume the customer has an initial total cost of $900.
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 $99.00.
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 worsens the problem of information asymmetry in this scenario.
true

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 21:00

Identifying transactions national park tours co. is a travel agency. the nine transactions recorded by national park tours during may 2019, its first month of operations, are indicated in the following t accounts: cash (1) 75,000 (2) 900 (7) 8,150 (3) 1,600 (4) 6,280 (6) 2,700 (9) 2,500 accounts receivable (5) 12,300 (7) 8,150 supplies (2) 900 (8) 660 equipment (3) 8,000 accounts payable (6) 2,700 (3) 6,400 beth worley, capital (1) 75,000 beth worley, drawing (9) 2,500 fees earned (5) 12,300 operating expenses (4) 6,280 (8) 660 indicate for each debit and each credit (a) whether an asset, liability, owner's equity, drawing, revenue, or expense account was affected and (b) whether the account was increased (+) or decreased account debited account credited transaction type effect type effect (1) (2) (3) (4) (5) (6) (7) (8) (9)

Answers: 3

Answer

Business, 22.06.2019 02:00

What is the main role of ctsos at the local level? at the local level, the main role of ctsos is to encourage students to become urge them to programs and competitive events.1. a.internsb.traineesc.members2.a.participateb.trainc.win

Answers: 3

Answer

Business, 22.06.2019 07:30

Jordan, inc. sells fireworks. the company’s marketing director developed the following cost of goods sold budget for april, may, june, and july. april may june july budgeted cost of goods sold $62,000 $72,000 $82,000 $88,000 jordan had a beginning inventory balance of $3,000 on april 1 and a beginning balance in accounts payable of $14,600. the company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. jordan makes all purchases on account. the company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. required prepare an inventory purchases budget for april, may, and june. determine the amount of ending inventory jordan will report on the end-of-quarter pro forma balance sheet. prepare a schedule of cash payments for inventory for april, may, and june. determine the balance in accounts payable jordan will report on the end-of-quarter pro forma balance sheet.

Answers: 2

Answer

Business, 22.06.2019 08:30

Match the items with the actions necessary to reconcile the bank statement.(there's not just one answer)1. interest credited in bank account2. fee charged by bank for returned check3. checks issued but not deposited4. deposits yet to be crediteda. add to bank statementb. deduct from bank statementc. add to personal statementd. deduct from personal statement

Answers: 2

Answer

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