Exam 11: Pricing Strategy

Winnie runs an ice cream cooler at the beach each summer. Her brother doesn't charge her rent for setting up her ice cream cooler in his stand. Each bar of ice cream costs her $.20. She adds on an additional $.20 to each bar to pay for electricity for the freezer, napkins, and her time, selling the ice cream finally at $.40 per bar. Winnie uses

An individual who buys a twenty-four-issue subscription to Ellery Queen Mystery Magazine saves $49 over the single issue newsstand price. This is an example of a

Price elasticity is a measure of consumer's price sensitivity, which is estimated by dividing relative changes in the quantity sold by the

Which is the primary law that is used to protect companies from price fixing?

_____ on pricing decisions concern primarily the nature of the target market and expected reactions of consumers to a given price or change in price.

Prestige pricing, odd pricing and _____ are three types of psychological pricing strategies.

Why do manufacturers offer channel members quantity discounts, promotional allowances, and slotting allowances?

Price elasticity can be estimated from historical data or from _____ data across sales districts.

Which of the following businesses would be most likely to use rate-of-return or target pricing?

Pricing decisions must be given careful consideration when a firm is introducing a new product or planning a short- or long-term price change because

Game Cube video game console was launched with an introductory price of $199.95, which was quite low for products of this category. The reasoning behind this low pricing was that the game cube manufacturers expected competition to move in rapidly. Identify the pricing policy used here.

Which of the following is an example of a demographic factor that is important to the pricing decisions made for a new type of low-fat cereal for children?

Price discrimination that lessens competition, or is deemed injurious to it, is outlawed by the

Identify the primary device used to outlaw horizontal price fixing.

For which of the following products is the seller most likely to use going-rate pricing?

_____ is most often used to describe the pricing of services that are nonroutine and difficult to "cost" in advance of their completion.

How does an organization know if its promotional allowances are legal?

Recognizing that buyers do not constantly monitor the prices of many products and will not necessarily quickly recognize the value in a price deal makes it very important to

Under a single policy, Assurance Inc., an insurance company, provides insurance such as fire, engineering, healthcare and property, to companies. This is to

Which of the following factors related to pricing is concerned primarily with how consumers perceive various prices or price changes?