Exam 11: Pricing Decisions: Objectives, Strategies and Tactics

The manufacturer's suggested list price

Differentiate between elastic and inelastic demand by giving an example for each.

A manufacturer that keeps a record of customer volume and issues cheques at a later date to cover allowances earned over the term of the offer is allowing a discount on the basis of a bill back.

Double ticketing is now less of a problem as retailers have moved to ________ at the point of sale.

Explain how a toy store could practise "bait and switch"pricing.

As the product manager for a cereal line, you have been told that maximizing ROI is to be your primary objective when setting prices. Which of the following will you apply?

Outline the three basic pricing objectives one might consider when setting a price.

The adoption of price points for the various lines of merchandise a retailer carries is

Phantom freight is of greatest concern to

A manufacturer is negotiating with a retailer. The quantity discount amount has been determined, but its application is still under discussion. The manufacturer wants to use a bill-back arrangement and the retailer prefers an off-invoice trade allowance. What are these arrangements and why are these preferences held?

You are responsible for marketing a new, highly unique, and innovative personal smart watch. What pricing strategy do you recommend for the introduction of this new product?

"The sales in units or dollars that are necessary for total revenue to equal total costs at a certain price"is known as

A linen manufacturer is looking to introduce a quality line of sheet sets to be sold to mass merchants such as the Real Canadian Superstore, Walmart, and so on. Market research indicates that consumers are willing to pay $59.98 for a Queen set (fitted sheet, flat sheet, and two pillow cases). The retailers expect their gross margin to be 50% of the selling price. The manufacturer expects to earn a 40% mark up on cost. What is the maximum amount the manufacturer can spend in production and distribution of the new sheets?

Charging $99 or $499 instead of $100 or $500, respectively, is an example of psychological pricing.

There are three basic options when it comes to pricing objectives: maximizing profit, increasing ROI, and maximizing sales volume.

"3/10, net 30"means that a customer whose payment is received 3 to 10 days after reception of the invoice will get a 30% discount.

Outline the conditions that are conducive to price skimming.

The objective of sales volume maximization is to increase the volume of sales each year.

Light, heat, and power are examples of variable costs.

When the market is divided into geographic areas and a uniform delivered price is established for each area, this is