Exam 16: Pricing Concepts and Strategies

Auctions are the purest form of negotiated pricing.

An oligopoly is a market structure with relatively few competitors and in which ease of entry into the industry by new firms is difficult due to high start-up costs.

What is the organizational goal of a high school when it sponsors a $100-per-person auction to raise funds for the operation of the school?

What is the price elasticity of demand for eggs if a 10 percent increase in the price of eggs results in a 5 percent decrease in the quantity of eggs demanded?

In what type of market structure would a producer have the least amount of flexibility in setting prices?

Many credit cards offer so-called "teaser" rates-low introductory rates that rise after a few months. What pricing strategy is the use of introductory rates an example of?

Define cannibalization and give an example.

Transfer pricing typically is a very simple process, especially with multinational corporations.

Based on marketing objectives, what is the general guideline called that is intended for use in specific pricing decisions?

The price of a product always involves money as the medium that facilitates the exchange.

A charitable organization that is chartered as a not-for-profit entity would never attempt to set prices for its products high enough to cover expenses and provide a financial cushion to cover unforeseen needs because that would imply it desired to earn a profit.

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 cost assessed when a product is moved from one profit centre within a firm to another is called _____.

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 part of an organization to which revenue and controllable costs can be assigned.

Buyers of a particular new car model are being offered zero percent financing. This is an example of a promotional allowance.

Which of the following is NOT an advantage of skimming pricing?

When the list price of a product is discounted by the value of a used product that is turned in at the time of sale, the transaction is called a sale with a trade-in.

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 price reduction offered to a consumer or a business buyer in return for prompt payment of a bill.

Explain everyday low pricing.

What type of price is normally quoted to potential buyers before any discounts or allowances are allowed?

What makes up a product's market price?