Exam 9: Pricing: Capturing Customer Value

Price setting is usually determined by ________ in small companies.

Target costing reverses the usual process of first designing a new product,determining its cost and then asking,'Can we sell it for that?'.

When a house mover also sells boxes and padding that are used in safely moving a household's furniture,the company is practicing by-product pricing.

An important type of good-value pricing at the retail level is ________,and it involves charging a constant,everyday low price with few or no temporary price discounts.

The fact that a meat pie cost three times more at the AFL Grand Final than the same meat pie cost at suburban Sam's Café is an example of ________.

A company faces fixed costs of $100 000 and variable costs of $8.00 / unit.They plan to directly sell their product to the market for $12.00.How many units must they produce and sell to break even?

When there is price competition,many companies adopt ________ rather than cutting prices to match competitors.

When companies set prices,the government and social concerns are two ________ affecting pricing decisions.

________ are the sum of the ________ and ________ for any given level of production.

All of the following conditions support market-penetration pricing EXCEPT which one?

Under ________ competition,the market consists of many buyers and sellers who trade over a range of prices,rather than a single market price.

Which of the following statements about a breakeven chart is true?

A(n)________ curve shows the number of units the market will buy in a given time period at different prices.

________ uses buyers' perceptions of what a product is worth,not the seller's cost,as the key to pricing.

Compare the practices of price-fixing and predatory pricing,explaining why each is prohibited by law.

Under which type of geographic pricing strategy does each customer pay the exact freight for the product from the factory to its destination?

Mach 3 razor blades must be used in the Mach 3 razor.Which type of pricing is most likely used?

In a retail context,the practice of offering selected items at or below cost to entice customers into the store and with an intention of making money on the shoppers' other purchases during that store visit is known as ________ pricing.

General Motors prices its automobiles to achieve a 15 to 20 per cent profit on its investment.This approach is called ________.

________ describes how responsive demand will be to a change in price.