Exam 12: Pricing Concepts and Management

Target has worked closely with suppliers such as Calphalon to offer customers a high-quality, branded product that is only available in Target stores. Due to these partnerships, Target has established a high level of perceived _______ among their customers since they provide a large range of brand-name merchandise at reasonable or below-competition prices.

Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

Marketers generally view ____ as the minimum price a product can be sold for.

Why is the marginal revenue of a product important to the marketer?

A price-skimming strategy assumes that

Bundle pricing may be perceived to be of value by customers because

Producers commonly provide discounts off list prices to intermediaries.

Which of the following is true about the evaluation of competitors' prices?

If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount.

Services that are performed by lawyers, dentists, or doctors are typically priced using ____; sometimes these prices are not based on the amount of time that is spent in each situation, but are based on a flat fee regardless of the difficulty involved.

If Pacific Power and Light increased its rates by 10 percent and experienced a 2 percent reduction in the demand for power, the demand would be

The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods?

The decision of Sears to use odd prices such as $59.99 for a Craftsman drill is an application of ____, where prices are often used to _____.

All for Fun is a retail store that offers a variety of board games, magic cards, and other collectible items and caters to teens and adults who enjoy strategy-based games. The store has over 20,000 magic cards and utilizes a sophisticated computer system to identify the value of each card. All for Fun determines the rarity of a given card and adjusts prices according to how much money customers are likely to pay for a particular card. Cards that are in limited production or considered "rare" are more expensive than cards that are widely available. Thus, the price for a single magic card might vary between $25 and $50 or more per card depending upon the market. What type of pricing is All for Fun utilizing?

Knowing the number of units necessary to break even is important in setting the price.

Periodic discounting is often predictable so consumers wait to make purchases until they can benefit from the price reductions.

An early-bird special offered by a restaurant during off-peak hours is an example of the secondary-market pricing strategy.

The federal government often uses ____ pricing when it grants defense contracts.