Exam 9: Pricing: Understanding and Capturing Customer Value

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency?

Freight-absorption pricing is used for market skimming and holding on to monopolistic markets.

Pricing strategies usually remain the same as a product passes through its life cycle.

Metro Museum has different admission prices for students,adults,and seniors.All three groups are entitled to the same services.This form of pricing is called ________ pricing.

When using product bundle pricing,sellers combine several products and offer the bundle at an increased price for increased profit.

Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product?

Everyday low pricing is a cost-based pricing strategy.

Which of the following statements about break-even analysis is most likely true?

________ pricing involves setting prices based on the expenses involved in producing,distributing,and selling a product plus a fair rate of return for a company's effort and risk.

Netcorp,an Internet service provider,charges its users a fixed rental fee for its basic package,which has a download limit.If a user exceeds this download limit,an additional fee is charged for every download.In this case,the firm's pricing strategy is referred to as ________ pricing.

The relationship between the price charged for a product and the resulting demand level can be shown in a ________.

________ pricing is when a firm tries to determine the price at which it will break even or make the profit it is seeking.

Identify a few situations in which price cuts or price increases might be necessary.

________ costs refer to the sum of the fixed and variable costs for any given level of production.

When a manufacturer offers a ________,a customer buys a product from a manufacturer's dealer within a specified time period,and the manufacturer sends the customer a check.

________ uses buyers' perceptions of what a product is worth as the key to pricing.

Which pricing mix strategy should be used in relation to saleable scrap materials? How does this strategy function?

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product?

A break-even chart shows the total cost and total revenue expected at various sales volume levels of a product.

Under ________,the market consists of many buyers and sellers trading over a range of prices rather than a single market price.