Exam 12: Developing Pricing Strategies and Programs

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 ________.

Customers usually have a lower price threshold below which prices signal inferior or unacceptable quality,as well as an upper price threshold above which prices are prohibitive and the product appears not worth the money.

Companies who believe that a higher sales volume leads to lower unit costs and higher long-run profits are attempting to ________.

What are the different types of promotional pricing?

________ let would-be suppliers submit only one bid;they cannot know the other bids.

Trade-in allowances reward dealers for participating in advertising and sales support programs.

Costs that do not vary with production levels or sales revenue are known as ________.

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?

Despite its weaknesses,markup pricing remains popular for which of the following reasons?

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

Which of the following is the most elementary pricing method?

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

Purchase decisions are based on how consumers perceive prices and what they consider the current actual price to be-not the marketer's stated price.

The price of tickets to the opera vary depending on where the person would like to be seated-in the gallery or in the stalls.This is an example of ________.

In first-degree price discrimination,the seller charges less to buyers of larger volumes.

Companies prefer customers who are less price sensitive.

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

When consumers examine products,they often compare an observed price to an internal price they remember.This is known as a(n)________ price.

Escalator clauses are found in contracts for major industrial projects,such as aircraft construction and bridge building.

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