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.