Exam 12: Pricing Concepts and Management

You and a partner have are planning to open a dollar discount store in your hometown. You plan to sell the majority of the items in the store for one dollar unit price. You have seen this concept work well in other cities and you believe the demographics of your hometown are a good fit for this retail concept. Which of the following types of customers are you expecting to frequent your store?

Scenario 12.1 Use the following to answer the questions. Concession Supply sells hotdogs, buns, and nacho ingredients to several major league ballparks across the country. Currently, Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200, Selling price = $16, and Variable costs = $6. Refer to Scenario 12.1. If Concession Supply increased its price by 10 percent and experienced only a 2 percent decrease in the demand for hotdogs, the demand would be

Kendra has been doing research for a smartphone manufacturing company. She has just been reviewing the results of several focus groups and has found that for customers, value is a function of the product's

Tiffany and John recently purchased a 25-year-old home and are currently immersed in a kitchen remodel, which includes replacing countertops, cabinets, and kitchen appliances. They are shopping for appliances and visited several retailers to compare prices and determine which brands best met their requirements. One retailer is offering the GE brand refrigerator, cook top, built-in oven, dishwasher, and warming drawer for $3,999, while another retailer has a set of LG appliances that includes a larger refrigerator, range/oven combination, dishwasher, and wine cooler for $3,450. Tiffany and John are meeting with their kitchen designer to finalize their plans for the kitchen and think that either one of these packages will fit their requirements. The appliance retailers are utilizing a ______ pricing strategy.

Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using ______ usually resulting in a ____

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

When determining markup as a percentage of cost, divide the markup amount by

Which of the following statements is true about the factors that affect pricing decisions?

Most pricing objectives based on ____ are achieved by trial and error because not all cost and revenue data are available when prices are set.

A customer looking for the lowest price on a mattress without concern for the quality of the mattress or the status gained by buying and using a certain brand is a price-conscious customer.

In the long run, the J. F. Smucker Company must view ____ as the absolute lowest price for its Jif brand peanut butter.

Wet Seal, a retailer of swimwear, employs a commonly used cost-based pricing method called

A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish?

Kohl's pays $16.50 for a six-ounce bottle of cologne and sells it for $25.95. Its markup as a percentage of cost is approximately ____ percent for this product.

Marketers that evaluate competitors' prices do so to set their own prices slightly below those of competitors.

You are the marketing manager for a multi-state auto dealership in the Southeast United States. It is that time of year when your fleet of autos goes through a major model year change. You are putting the final touches on your pricing strategy to facilitate this change in your inventory of autos. Which of the following pricing strategies will you use to facilitate this model year change?

Maria recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use

Which of the following would be used in setting the price of a new product if considerable competition is expected?

When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as

To determine the breakeven point in units, divide the fixed costs by