Exam 10: Price: What Is the Value Proposition Worth

Manufacturers of which of the following would be most likely to use freight absorption pricing?

When a company charges the same rate to ship a product anywhere in the United States, it is using which form of pricing?

To determine the break-even point, a firm first needs to calculate the contribution per unit. What does this mean?

On the Internet, price can easily be adjusted to meet changes in the marketplace. This is called ________.

________ do not vary with the number of units produced.

Enforcing laws against ________ is complicated because such practices are similar to the legal practice of "trading up."

The average price Xerox charged when it introduced the first stand-alone fax machine was $12,700. This premium price was a way for Xerox to recoup some of the research and development costs that went into production. Xerox used ________.

Which of the following is an external influence that affects pricing decisions?

How has the Internet made it easier for companies to use dynamic pricing strategies? Use an example in your explanation.

Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share. As a consultant, you should recommend a ________ pricing strategy.

The manufacturer's suggested retail price is also referred to as the ________.

Penetration pricing is the opposite of skimming pricing.

Variable costs for producing textbooks include the price of paper.

When Home Depot stores entered the Canadian market, there were already stores providing similar services and products. To get people to try Home Depot, the chain deliberately sold merchandise below the price that the Canadians were used to. What type of pricing objective did Home Depot use?

Inflation may cause marketers to decide to either raise or decrease their prices.

What is the first step a marketer should take to estimate a product's potential sales?

What is vertical integration, and how does it affect a retailer's pricing?

With target costing, marketers first ________ and then ________.

Compare F.O.B. origin pricing and F.O.B. delivered pricing.

A skimming price is typically used when the company introducing a new product anticipates other competitors will enter the market quickly.