Exam 11: Pricing Strategy

For which of the following products are you most likely to see the retailer using prestige pricing?

_____ is an example of pricing below the competition.

It is common for the manufacturer of a new product to have to pay a retailer $30,000 in order to get the shelf space needed to sell its new product in a particular retail establishment. This $30,000 fee is an example of a

Ned buys old lawn mowers, reconditions them, and sells them for $225. He knows he needs to sell 80 mowers to break even. Calculate Ned's variable cost per lawn mower if his fixed costs are $8,000.

Hertz economy cars are rented for $129 rather than $130 to appear less expensive. This best describes

Frito-Lay's potato chips are priced at 69 cents a bag rather than 70 cents. This is to

Which kind of pricing strategy would you expect producers to use for pricing homogeneous products such as wool, tomatoes, wheat, coal, and bone meal?

Which of the following observations about government regulation of pricing is true?

Pricing a product at competition is called _____ and is popular for homogeneous products.

Which of the following statements about product distinctiveness is true?

The three primary considerations pertaining to demand influences for a product are

Marking merchandise with an exceptionally high price and then claiming that the lower selling price actually used represents a legitimate price reduction, is an example of

Which of the following describes a disadvantage associated with cost-oriented approaches to pricing?

The cost to _____ and market products provides a lower bound for pricing decisions and a baseline from which to compute profit potential.

The pricing strategy in which the seller charges a relatively high price on a new product is called

The pricing strategy in which the seller charges a relatively low price on a new product is called _____ policy.

For which of the following products would the producer be most likely to use cost-plus pricing?

The sales of Noritake dinner plates are high even though a Noritake dinner plate is priced relatively high for its product class. This is because it offers high quality, has special features, and consumers view it as a prestige product. The pricing used by Noritake can be best described as

Manufactured goods can be differentiated on the basis of certain features, such as package, trademark, engineering design, and chemical features. These features highlight the _____ of the product.

The two most important environmental influences in pricing decisions are competition, and