Exam 19: Pricing Concepts

An organization is using _____ when it sets its prices so that total revenue is as large as possible relative to total costs.

Which of the following is most likely to be a variable cost for an Internet retailer that sells spices,herbs,and seasonings to consumers?

Name two advantages and two disadvantages associated with the use of break-even analysis.

Market share is a company's product sales as a percentage of its total sales for that industry.

Maximization of cash should be a long-term objective.

Laurie knows little about cooking and does not want to spend the time to learn how to make a quiche.However,she has been asked to bring a quiche to an office retirement party.Not wanting to make a poor choice,she is likely to:

An office supply store can buy a desk for $300.If the store owner sells the desk for $450,what is the markup based on cost?

Variable costs vary with changes in the level of output,whereas marginal costs do not vary as output changes.

List the three categories of pricing objectives and then two specific strategies in each category that a marketer could implement to achieve those objectives.

Smelly Fruit At first glance,there is little to like about the durian.The durian is a fruit popular in Thailand that is spiky outside and stinky on the inside.When confronted with the durian for the first time,the Wall Street Journal recently reported that westerners often describe its distinctive sulphurous smell with words like stinky socks and manure.However,the durian is so popular in Thailand that one variety of the durian fruit,called the Kan Yao,has been selling for as high as $200.Even at that price,supply of the Kan Yao cannot keep up with demand.There are approximately 30 varieties of the durian grown in Thailand,with the most plentiful selling in the $15 range.The yellow flesh of the durian,the part you eat,has very powerful smell but possesses a sweet,nutty taste that Thais cannot seem to get enough of at any price. -Refer to Smelly Fruit.At $200 per Kan Yao,demand for the fruit appears to be higher than supply.Suppose that at a price of $225,the amount demanded exactly meets the amount farmers are willing and able to supply.In this case,the $225 price would be considered the _____ price.

LivingSocial sold Amazon gift cards at a loss.Therefore,they are not a good or service on the basis of cost.