Exam 16: Pricing Concepts and Strategies

Harding & Stanley Limited has been charged with price discrimination under the Competition Act. What would be the best defense against the charge?

When setting pricing strategy, some marketers use target-return objectives, which are defined as short-term or long-term revenue targets.

According to economists, profit will be maximized by a product price that exactly balances the revenue received from the last unit sold with the increase in total cost involved in making and selling it.

Odd pricing has practically vanished from the modern North American marketplace.

What pricing policy assumes that some prices are more appealing than others?

What is a one-time reduction in list price, typically offered at time of sale, referred to as?

What term refers to the skimming pricing strategy?

A firm with an overall goal of becoming the market leader may elect to pursue a low-price policy as a means of achieving maximum sales penetration.

Which of the following is an example of odd pricing?

Nonrecurring government and organizational purchases are generally characterized by a system of set prices to which the appropriate purchasing organizations have agreed.

Describe the significance of yield management.

Mignon d'Armitage manufactures jewellery. This firm is planning to introduce a new necklace and is trying to determine how many units it must sell in order to break even. The variable cost for each unit will be $20, and it is expected to sell the necklace at a price of 45 each. At a fixed cost of $100,000, how many units must be sold to break even?

When some customers pay more than others for the same product this is referred to as price fixing.

Modern accounting procedures provide managers with a clear understanding of cost structures so those managers can identify demand and develop accurate measures of demand in real-world settings.

A company has fixed costs of $35,000 and has average variable costs of $7 per item. This company sells 10,000 units and just breaks even. What is the unit selling price for the product?

What does the use of bots to search out price quotes on specified products force Internet marketers to do?

Lower "off-season" prices for lodging at resorts illustrates the use of yield management as a strategy to generate revenues for a largely fixed-cost industry.

Pricing objectives are ultimately guided by the organization's overall objectives.

What does pricing a product "Free of Board shipping point" or "Free on Board origin" mean?

If prices go up and remain high, some products once regarded as necessities may be dismissed as luxuries.