Exam 20: Pricing Concepts

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

Price is the most easily adjusted ingredient in the marketing mix.

Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave.In this example,Suave is competing on the basis of

Scenario 20.1 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 20.1.To break even,Concession Supply should sell ____ cases of hot dogs per day at Wrigley Field.

The oldest form of exchange-trading of products-is known as

If the terms of a business exchange are 2/10 net 30,this means that the transaction

Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.

Identify and describe the major factors that affect pricing decisions.

Abby is marketing consultant who specializes in small businesses.Her current client is very interested in estimating the costs for the coming year,in order to find the breakeven point.Abby knows this is an important financial statistic because below the breakeven point,the firm is operating

Scenario 20.2 Use the following to answer the questions. The BASF Chemical Company in Germany has developed a new rubberized coating.The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches.BASF plans to market the product directly to businesses that manufacture the casings for these types of products.BASF currently uses a system of salespeople headquartered in Germany,while its primary business customers are in China. -Refer to Scenario 20.2.If BASF were to price its product in barrels from the factory,before it is loaded on the carrier,this would be an example of ____ pricing.

Price elasticity of demand measures the sensitivity of demand to changes in price.

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

Scenario 20.1 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 20.1.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

Explain what is meant by price elasticity of demand.

A customer's interpretation and response to a price depends on what the customer receives from a purchase compared to what he or she gives up to make a purchase.

Generally,customers are most likely to rely on the price-quality association when

What equation shows organizations the relationship between price and profit?

Because buyers have unlimited purchasing power,they do not have to allocate it to the most desired products.

Electricity is an example of a product that is price elastic.