Exam 20: Pricing Concepts

One advantage of nonprice competition is that

A concession in price in business markets to achieve a desired goal is called a(n)

Noncumulative discounts are one-time reductions in prices based on the number of units purchased, the dollar value of the order, or the product mix purchased.

The legality of uniform geographic pricing has been challenged, and so its use has been abandoned.

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.

Isabella is a product manager for The Container Store, a retailer of plastic bins and other storage containers. Sales have been declining in the past nine months and her management team is pressuring her to compete based on price discounts. However, Isabella is aware of the dangers associated with engaging in price competition. She knows that competitors can also change prices quickly and aggressively, which can result in a(n) ____ that will be harmful to both companies.

Which of the following acts does not directly affect pricing decisions?

Profit margins for marketing channel members must be considered when determining the price of a product.

Price is the value that is exchanged for products in a marketing transaction.

Reductions for transportation and other costs related to the physical distance between buyer and seller are known as

What does the demand curve for a prestige product look like?

At what point does a firm maximize profit?

Provisions of the Robinson-Patman Act, as well as those of the ____, limit the use of price differentials.

What are the components of total cost? Give specific examples.

Safe Auto advertises its automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in

Identify and describe the major factors that affect pricing decisions.

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

Marginal analysis involves examining

The ____ prohibits price fixing among firms in an industry.

The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.