Exam 16: Pricing Concepts and Strategies

Match each item to the statement or sentence listed below. a.competitive bidding b.penetration pricing strategy c.list price d.trade discount e.price flexibility f.promotional pricing g.loss leader h.cannibalization i.bundle pricing j.odd pricing k.transfer price l.profit centre m.skimming pricing strategy n.competitive pricing strategy o.pricing policy p.market price q.noncumulative quantity discount r.step out s.bot t.cash discount -The amount a consumer actually pays for a product is called _____.

What costs are used in incremental-cost pricing?

Match each item to the statement or sentence listed below. a.competitive bidding b.penetration pricing strategy c.list price d.trade discount e.price flexibility f.promotional pricing g.loss leader h.cannibalization i.bundle pricing j.odd pricing k.transfer price l.profit centre m.skimming pricing strategy n.competitive pricing strategy o.pricing policy p.market price q.noncumulative quantity discount r.step out s.bot t.cash discount -is a pricing policy permitting variable services for goods and services.

What term refers to the practice of marketing merchandise at a limited number of prices?

Match each item to the statement or sentence listed below. a.competitive bidding b.penetration pricing strategy c.list price d.trade discount e.price flexibility f.promotional pricing g.loss leader h.cannibalization i.bundle pricing j.odd pricing k.transfer price l.profit centre m.skimming pricing strategy n.competitive pricing strategy o.pricing policy p.market price q.noncumulative quantity discount r.step out s.bot t.cash discount -Offering a printer along with a personal computer at a single price is an example of _____.

Lysol sanitizing wipes entered the market at a low sale price and the product was supported by heavy couponing. As the initial trial period passed, the pricing slowly rose and the couponing became more infrequent. This activity is an example of penetration pricing.

MBNA offers an opportunity for credit card customers to transfer balances from competitive cards and pay low financing for a six-month period. After the introductory period is over, the rate will increase to the normal percentage. MBNA's strategy is to penetrate the market and obtain increased market share.

What is the purpose of the Competition Act?

Cash discounts are usually specified by a term on the invoice such as 2/10, net 30, which means that the bill is due in full within 10 days, with 30 days remaining to claim a 2 percent discount.

Match each item to the statement or sentence listed below. a.competitive bidding b.penetration pricing strategy c.list price d.trade discount e.price flexibility f.promotional pricing g.loss leader h.cannibalization i.bundle pricing j.odd pricing k.transfer price l.profit centre m.skimming pricing strategy n.competitive pricing strategy o.pricing policy p.market price q.noncumulative quantity discount r.step out s.bot t.cash discount -A(n) _____ is a pricing practice in which a firm raises prices and then wait to see if others follow suit.

Which of the following is NOT a characteristic of everyday low pricing?

What is the common pricing strategy used in selling expensive and luxurious automobiles?