UMD11: Price Premium Marketing Dashboard
-The UMD11: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2009?
A)12.1%
B)0%
C)-5.0%
D)-5.6%
E)-11.1%

Question

UMD11: Price Premium Marketing Dashboard
-The UMD11: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2009?
A)12.1% 
B)0% 
C)-5.0% 
D)-5.6% 
E)-11.1%

Quizplus · Accepted Answer

To calculate the price premium, we need to compare the average price of the brand to the average price of all energy drinks. In 2009, the average price for Monster was $2.56 and the average price for all energy drinks was $2.71.

Price premium = (Average price for brand / Average price for all energy drinks - 1) * 100

Price premium for Monster = ($2.56 / $2.71 - 1) * 100 = -5.54%

So the correct answer is D, -5.6%.