Exam 20: Pricing Concepts

Logan is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Logan just paid is considered to be

Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand.

At the breakeven point,

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

Both the Federal Trade Commission Act and the Wheeler-Lea Act prohibit

Which of the following statements about price elasticity is false?

Buyers who focus on purchasing products that signify prominence and status are

Nonprice competition does not permit unique product features, higher product quality, and customer service.

If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be

For most firms in the United States, demand curves are

Which factor is least likely to affect pricing decisions?

Brand uniqueness is not important in nonprice competition.

Compare and contrast price and nonprice competition. Give examples of firms that compete on a price basis and on a nonprice basis.

Justin, a sales representative for Serta Mattress manufacturers, phones Kirk of Southside Furniture to inform him that if he will increase his recent order of 15 mattress sets to 20, he will receive a 14 percent price reduction. This offer is due to a recent overstock condition at the factory and will not be available in the future. The discount offered here is

Channel member expectations play no part in a firm's pricing decisions.

Profits for a firm are computed as follows: Profits = TR - FC.

The types of prices that appear most often in ads are ___; while the types of prices that occur least often in ads are ____ prices.

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

For most consumers, there is an assumed relationship between

ACE Electronics introduces a new voice-activated personal computer that no longer requires a keyboard. ACE charges the high price of $11,000 per unit, thus generating large profits because it has a 20 percent market share. ACE's major problem in the future will most likely be