Exam 14: Developing Pricing Strategies and Programs

When supermarkets and department stores drop the price on well-known brands to stimulate store traffic, they are said to be following ________.

Bella's Inc. has estimated the demand and costs associated with alternative prices. It has finally chosen to price its new offering in such a way that it will maximize the rate of return on investment. What can be deduced about the company's objective?

Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand. What kind of a pricing is the company depending on?

When Alan bought his car, the bank gave him 24 months to repay his car loan. But when Alan made a request to increase the time frame to 36 months, the bank granted the extension. The bank was willing to offer Alan a ________.

When Gina's company printed the ad for their Perfume in the newspapers, the caption read, "WAS $100, NOW $75". What kind of a promotional pricing did her company use?

A company must make payments each month for rent, heat, interest, and salaries. These are ________.

Which of the following auctions is characterized by one seller and many buyers?

After estimating the demand and costs associated with alternative prices, a company has chosen to price its product in such a way that it gains the highest rate of return on its investment. The company is looking to ________.

________ pricing takes into account a host of inputs, such as the buyer's image of the product performance, the channel deliverables, the warranty quality, customer support, and attributes such as the supplier's reputation, trustworthiness, and esteem.

In which of the following forms of countertrade do buyers and sellers directly exchange goods, with no money and no third party is involved?

A company that is looking to maximize its market share would do well to follow ________ pricing.

The first step in estimating demand is to ________.

________ are offered by a manufacturer to trade-channel members if they will perform certain functions, such as selling, storing, and record keeping.

________ reward dealers for participating in advertising and sales support programs.

In the case of prestige goods, the demand curve sometimes slopes upward.

Price is one of the two elements of the marketing mix that produces revenue.

In a price-war trap, higher-priced competitors match the firm's lower prices but have longer staying power because of deeper cash reserves.

In high-low pricing, retailers charge low prices on an everyday basis with occasional price increases.

A(n)________ is an extra payment designed to gain reseller participation in special programs.

A toaster manufacturer who has invested $1 million in the business wants to set a price to earn a 20 percent return on investment, specifically $200,000. What pricing method should it choose?