Exam 11: Pricing Strategy

A new device "Sniffer", used for testing alcohol levels in drunken driving suspects, is priced out of the reach of most law enforcement units. Those units that have bought the Sniffer are extremely pleased with its results and the fact that these results are readily accepted in court. There is nothing on the market today that has the accuracy and the portability of the Sniffer. The manufacturer of the Sniffer is likely to be using _____ pricing.

Which type of cost-oriented pricing is most closely related to markup pricing?

One of the price limitations that need to be considered by manufacturers is

Which of the following is an example of a demographic factor that would be particularly relevant to the pricing decisions made by a company that sells insurance?

The three basic variations in cost-oriented pricing are mark-up pricing, cost-plus pricing and

A retailer who uses an everyday low pricing (EDLP) strategy tends to

Which of the following interpretations of price elasticity is true?

Which of the following is an example of a psychological factor that is important to the pricing decisions made for collectible dolls that sell for $299?

Which of the following observations about the impact of product considerations on pricing is true?

All of the following observations about pricing objectives are correct except

Which of the following is not a demographic factor affecting pricing decisions?

When Greta went to buy some bedding plants for a flowerbed she was building, she noticed that a six-pack of plants was for $.79, a 3-inch container with one plant was for $.99, and a 5-inch container was for $1.29. This example indicates that the seller is using

Which of the following is a demographic factor that influences the pricing decision of a product?

Both Robin and Kenya went to buy a black sweater. Kenya bought hers at Dillard's and paid $79. Robin bought a similar one at Sears and paid $34.95. Kenya is convinced her sweater is much superior to Robin's because it is more expensive than his. Identify the psychological factor because of which Kenya buys a high priced item.

_____ is a measure of consumers' price sensitivity, which is estimated by dividing relative changes in the quantity sold by the relative changes in price.

Large sums of money are often invested to make the products and brands distinctive in the minds of buyers so that the

Before it closed its doors, Montgomery Ward advertised a pair of diamond earrings for $399 that it said had a regular price of $2,199. When the Better Business Bureau examined the incident, it found no evidence the retailer had ever actually offered a pair of earrings at afore said "regular price." Montgomery Ward was found guilty of

A product could be priced relatively low for a product class because it offers value in the form of acceptable quality at a low price. This statement is best exemplified by

Setting prices so targeted customers will perceive products to offer greater value than competitive offerings is called

In which step of the general pricing model do we estimate how much of a particular product the target market will purchase at various price levels?