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 pricing policy in which a lower-than-normal price is used as a temporary ingredient in a firm's marketing strategy is called _____.

Marketers, encouraged by the Profit Impact of Marketing Strategies project (PIMS) analysis, find it is better to have a smaller share of a large market than a larger share of a small market.

What should customers submit to the creditor if they want to take the discount on an invoice for $300 dated April 1 with terms of 3/10 net 30?

Even when artificially low prices are maintained for a period of time, it is rare for customers to expect that such prices are customary features of the product.

Elasticity is the measure of the responsiveness of purchasers and suppliers to quantity changes.

What do prestige pricing objectives emphasize?

A market characterized by heterogeneous, well-differentiated products sold by a large number of sellers with some price control to a large number of buyers is a market structure called monopolistic competition.

If foreign marketing costs are high and variable unit costs are used as the basis for pricing, a standard worldwide price may successfully be used.

What does pricing policy featuring variable pricing have?

Why does a seller use a negative cash discount?

At present, what are both long-distance telephone services and wireless carriers tending to adhere to?

As a pricing strategy, yield management relies on varying the prices of products for which costs are largely fixed, so as to generate the highest possible stream of revenue from their sale.

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 price of $9.99 is an example of _____.

A loss leader is a product priced below cost by a retailer that hopes the price will attract customers who will then buy other, regularly priced merchandise.

What is one of the major benefits derived from target-return objectives?

Basing-point pricing scenarios are one of the most favoured systems by buyers who appreciate the equity built into the pricing structure.

What is it called when a manufacturer offers an intermediary a percentage discount off the list price of products it handles in exchange for performing certain wholesaling activities?

Setting the price of a good at a high level so as to discourage its consumption to accomplish a social objective is a strategy often applied by government.

What objectives are short-run or long-run profitability goals, usually stated as percentages of sales or investment?

What are the geographic considerations of pricing?