Exam 20: Pricing Concepts

Jaggd Inc. ,an electronic goods manufacturing company,was planning to launch its latest smartphone in the market.Within the first few days of launching the phone,Jaggd wanted to earn as much revenue as the cost incurred in manufacturing the phone.So,it priced the phone about as high as the market would allow.In this case,Jaggd entered the market with a__________approach to pricing the smartphone.

During the hot summer months,the Nick Price Golf School offers a 25 percent reduction on its golf lessons to attract golfers during the off-season.Which of the following is exemplified in this scenario?

Why do manufacturers of products that are in the maturity stage of the product life cycle prefer to offer similar prices?

What happens when demand is elastic?

When consumer demand is sensitive to price changes,__________occurs.

Which of the following is true about shopping bots?

Large customers insist on cash rebates if the guarantee of stores' profit margins are not met.

_____ costs do not change as output is increased or decreased.​

​The quantity of a product that people will buy is most likely to decrease as the product's _____ increases.

If the demand curve for a product slopes downward and to the right,it indicates that more of the product is demanded as its price is lowered.

Prices always steadily decline for a product in the decline stage of the product life cycle.

Jade claims that a consumer's psychological state of mind plays a vital role in how he perceives the price and quality of a product.Provide arguments to support his claim.

When consumer demandis sensitive to price changes,_____ occurs.​

Justify the statement,"Shopping bots have made the purchase decisions of consumers more efficient."

Dynamic pricing is used to:

The best way for manufacturers to control prices is by using an exclusive distribution system.

At Starmart,Riya saw a box of collector's edition comic books.Each book was priced at $28.50,but a customer who bought five of the books was required to pay only $19.99 for each book.Riya bought one book and her friend bought five books.What was the retailer's revenue from this purchase?

​A cost that changes with the level of output is called a(n)_____ cost.

Shopping bots theoretically give pricing power to:

Randy's Apparels Inc.plans to expand its customer base and product line.It introduces a new line of designer wear that are very expensive and exclusively available at Randy's.It emphasizes the high quality and exclusivity of this new line of products in its advertisements.In this case,Randy's Apparels has used__________for the new line of products.