Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

PRODUCT issues with GRR’s marketing mix, by selecting FOUR of the letters from
A-H. 
(0.5 marks each, total = 2 marks) 
(b) 
GRR is considering adopting one of the following pricing strategies for a new range of 
stuffed dinosaur toys: 
A Penetration 
pricing
 
B Going 
rate 
pricing
 
C 
Cost plus pricing
 
D Price 
skimming
 
Required:
Identify the pricing strategy above which is most closely associated with each of the 
following descriptions, by writing A, B, C or D. 
(i) 
The toys could be launched at a low initial price to gain market share and 
then the price is raised later to maximise profits. 
(ii) 
The toys are fairly innovative, so GRR may launch them at a high price and 
then drop them to a lower level later when its rivals launch similar products. 
(iii) GRR may sell its toys at the same price as similar rival products to ensure it is 
able to compete successfully. 
(iv) GRR could sell the products at a 15% mark-up. 
 
 
(0.5 marks each, total = 2 marks) 
 (Total: 4 marks) 
 
Download Free Acca,ca study materials from WWW.ACCOUNTANCYWALLS.COM

---

PRACTICE MULTI-TASK QUESTIONS : 
S E CTI ON 2
K APLA N PUBLISH ING 
89 
14
G is a multinational company that provides IT support to its clients. 
It is aware that there are significant cultural differences between its operations in different 
countries. G’s managers have decided to undertake an analysis of its corporate culture in 
each of its countries of operations using Hofstede’s cultural dimensions.