REFER TO DEFEET INTERNATIONAL. DEFEET’S _____ IS WHAT ITS CUSTOME...
122. Refer to DeFeet International. DeFeet’s _____ is what its customers give up to obtain their apparel.
a. product strategy
b. place strategy
c. price strategy
d. promotion strategy
e. positioning strategy
ANS: C
Price is what buyers give up to obtain a product.
PTS: 1
REF: 40-41
OBJ: 02-9
TOP: AACSB Reflective Thinking
KEY: CB&E Model Pricing
MSC: BLOOMS Level III Application
Novartis, a Swiss drug maker, is planning to purchase a majority stake in Zhejiang Tianyuan
Bio-Pharmaceutical Company, a Chinese vaccine maker. Novartis has agreed to pay $125 million for
the company that holds a 3% share of China’s $1 billion vaccines market. The market for vaccines is
growing 20% or more in developing nations of Asia, Africa, and Australasia. In the past, vaccine use
has been limited to basic shots against diseases such as polio, tuberculosis, and measles, but as the
economies of these countries grow, government and private healthcare spending focuses on preventing
diseases such as hepatitis B, cholera and rotavirus, tetanus, and others. Some critics are against the
acquisition, claiming that prices will increase. Novartis claims it is not interested in raising prices but
rather to expand Tianyuan’s product offerings.