Exam 11: Pricing Strategy

Which of the following is an example of an environmental influence on pricing decisions?

Deceptive pricing practices are outlawed under the

Which legal tool monitors the illegal practice of granting price reductions to some customers under the guise of promotional allowances?

_____ are payments to retailers to get them to stock items on their shelves which in turn can increase sales but also add marketing cost to the manufacturer and affect profits.

Which of the following is a product consideration in pricing?

Before Al and Carole started their vacation, they had budgeted $70 a night for motels. When the couple went to check-in into a motel for the night, they were pleasantly surprised to learn that the $64 they paid for their room included breakfast too. Which form of psychological pricing is the motel using?

A discount for purchasing a large number of units is a

The estimated production and sales for a coffee table book on celebrity gardening is 50,000 volumes at a total cost of $750,000. Calculate the sales price for each book if the publisher desires a before-tax return of 25 percent.

Which of the following is not a commonly used pricing objective?

A retailer who uses _____ pricing strategy can increase profits through price discrimination.

A company might use penetration pricing when

Betty went to the hardware store this morning to purchase a gallon of Round-Up weed- and grass-killer for which she expected to pay about $15. She found a gallon of Round-Up packaged with a quart of Weed-B-Gone, a new product claiming to kill weeds without killing grass. Together they were priced at $14. This example would best describe

An important legal constraint on pricing is that

The fixed costs for manufacturing hand-painted wooden decorative plaques are $7,000. The 5-inch oval plaques are sold at craft fairs for $2.25. Variable costs to produce 100 plaques are $100. What is the break-even point in units?

Kroger uses a strategy of price discrimination to increase profits. It charges higher prices to customers who are not price sensitive and low prices to price sensitive customers who will wait for sales. Identify the pricing strategy of Kroger.

If consumers or organizational buyers perceive the price of a product to be too low, then

Price elasticity can be estimated by sampling a group of consumers from the target market and polling them about various price/quantity relationships. Which of the following observations concerning this approach is true?

Research has tentatively established that customers who choose high-priced items see the consequences of a poor choice as being undesirable as they

If a product cannot be produced and marketed at a price to cover its costs and provide reasonable profits in the long run, then one possibility is to

Research has found that the most common pricing objectives are pricing to achieve a target return of investment, stabilization of price and margin, pricing to meet or prevent competition, and pricing