Exam 14: Developing Pricing Strategies and Programs

A retailer who holds on to a(n)________ policy charges a constant low price with little or no price promotions and special sales.

Madame Tussaud's wax museum is a popular tourist attraction in London. The museum charges higher entry rates for tourists compared to locals. This form of price discrimination is known as ________.

Loss leader pricing dilutes a company's brand image.

Matt's retail store offers all its products at $2 lesser than its competitors throughout the year. The store never runs any promotional campaigns or offers any additional special discounts. Matt's retail store is following a(n)________.

In ________, the firm bases its price largely on competitor's prices.

An umbrella manufacturing company's fixed costs are $275,000. The variable cost per unit is $5 and each umbrella is sold at $10. How many units should the firm sell in order to break even?

ROC Engineering, a Chinese shipbuilding company, agrees to build a fleet of submarines for the Sri Lankan navy, for which it will be paid in the local Sri Lankan currency. As per the agreement, ROC must also spend a substantial amount of the money it generates through this deal within the country. In accordance with the contract, ROC buys Sri Lankan tea at a reduced rate. This is an example of which of the following forms of countertrade?

When a company introduces a product at a very high price and then gradually drops the price over time, it is pursuing a ________ strategy.

Deducting the desired profit margin from the price at which a product will sell, given its appeal and competitors' prices, is known as ________.

When Cathy went shopping, she paid a lot to buy a jacket that had a well-known designer's tag attached to it. After a few days, she came across a jacket which was undistinguishable from the one she had bought but was priced 5 times lesser than the earlier one. She didn't give this a second thought because she was convinced that the designer label she had bought was worth it. What can be deduced from this?

Armac Ltd., is a sluice-box manufacturer based in China. A sluice-box is used for gold prospecting. Armac is interested in selling a few of its machines to an American mining company, but it wants 95 percent of the machines' price in gold and the rest in ores recovered by using the machines. This is an example of a ________.

Pricing cues such as sale signs and prices that end in 9 are more influential ________.

A market-penetration pricing strategy is most suitable when _______.

A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI. The cost per unit is $18 and the company expects to sell 50,000 units in the first year. Calculate the company's target-return price for this product.

________ pricing is a matter of reengineering the company's operations to become a low-cost producer without sacrificing quality.

A Japanese firm is ready to sell its recent technological innovation to the U.S. government. But it has asked for 80 percent in cash and the rest in mica. The Japanese firm is looking to enter into a(n)________ with the U.S. government.

________ price refers to what the consumers feel the product should cost.

What are the different possible consumer reference prices?

Pepsi Co. sold its cola syrup to Russia and agreed to buy Russian vodka at a certain rate for sale in the United States for the next 5 years. What kind of a countertrade did both the parties indulge in?

In ________, the seller charges different amounts to different classes of buyers.