Exam 16: Pricing Concepts and Strategies

What is a major factor influencing the elasticity of demand for a product?

For the purpose of transfer pricing, what is any part of the organization to which revenue and controllable costs can be assigned, such as a department, referred to as?

Which statement best describes full-cost pricing?

In order to recover research and development costs rapidly and earn initial high profits, Sony set a high price for its plasma TVs. What is the pricing strategy Sony used?

A retailer wants to increase the number of customers shopping in her store. Which of the following has the greatest potential for success?

When do buyers and sellers often set purchase terms using negotiated contracts?

The amount by which the average transportation charge exceeds the actual cost of shipping to a particular destination under postage-stamp pricing is called phantom freight.

Skimming pricing strategies are also known as "market-plus pricing."

Which of the following has monopolistic competition as a typical condition?

Everyday low-pricing is closely related to skimming pricing strategies.

What do you need to know to calculate the breakeven point for a product?

What is the global pricing strategy that allows the greatest flexibility in setting prices to reflect local marketplace conditions?

In a recent special offer, any customer who brought in a toaster oven, working or not, was given a $50 credit toward the purchase of a new Amana microwave oven. What is this an example of?

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 designed to deemphasize price as a competitive variable by pricing a good or service at the level of comparable offerings.

In the analysis of economic cost and revenue curves, which statement best describes variable costs?

Penetration pricing is often used in a market in which a new product is likely to face strong competition when introduced.

What pricing objective might seek sales maximization within a given profit constraint?

Generally, flexible pricing policies are to be found in a mass-selling marketing program, while programs based on individual bargaining rely on one-price policies.

What is an important geographic consideration in setting and quoting 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 -The price normally quoted to potential buyers is called _____.