Exam 9: Developing New Products and Managing the Product

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In Lima,Peru,20 stores specialising in selling the same quality and brand of wheat products are located on one street.An individual seller cannot charge more than the going price without the risk of losing business to the other stores.This is an example of what type of market?

(Multiple Choice)
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A store prices its confectionery displays at ten different price levels,ranging from $2.00 per kilo to $4.95 per kilo.This is an illustration of price steps.

(True/False)
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Which of the following statements about a breakeven chart is true?

(Multiple Choice)
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A manufacturer offers 3\10,net 30,terms to a wholesaler for a recent purchase.Under these terms,the wholesaler may deduct ________ per cent if the bill is paid within ________ days.

(Multiple Choice)
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All of the following conditions support marketing skimming pricing EXCEPT which one?

(Multiple Choice)
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Mach 3 razor blades must be used in the Mach 3 razor.Which type of pricing is most likely used?

(Multiple Choice)
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Costs that vary directly with the level of production are referred to as ________ costs.

(Multiple Choice)
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Which of the following is the opposite of FOB-origin pricing?

(Multiple Choice)
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The National Gallery has different admission prices for students,adults and seniors.All three groups are entitled to the same services.This form of pricing is called ________.

(Multiple Choice)
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When using price steps,the seller must establish perceived ________ that support(s)the price differences among the products in the line.

(Multiple Choice)
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An important type of good-value pricing at the retail level is ________,and it involves charging a constant,everyday low price with few or no temporary price discounts.

(Essay)
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When Circuit Town Electronics sets its televisions at three price levels of $699,$899 and $1099,it is using ________.

(Multiple Choice)
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Which of the following is the main problem with breakeven analysis?

(Multiple Choice)
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In retail settings,________ involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

(Multiple Choice)
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Some industries commonly use two-part pricing,where the price is broken down into a fixed fee and a fixed usage rate.

(True/False)
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If used too frequently or continuously,promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers.

(True/False)
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When amusement parks and movie theatres charge admission plus fees for food and other attractions,they are following a(n)________ pricing strategy.

(Multiple Choice)
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