Exam 19: Setting the Right Price

Which discounting practice that is often done routinely without much forethought do business-to-business salespeople often use to heighten the demand for certain items in a product line?

The Grand Slam Ticket Pack of Major League Baseball's Toronto Blue Jays provides four game tickets,four hotdogs,four Coca-Colas,four Jays bucket caps,one game program,and parking at prices as low as $59.This price is significantly lower than the items could be purchased individually.What are the Jays using?

Distinguish between a cumulative and a noncumulative discount.

Price is not set on the product until the item is either finished or delivered when using which of the following?

What is the term for an attempt by the marketing manager to induce store patronage through selling a product near cost or even below cost?

What does uniform delivered pricing enable a firm to do?

Green Earth Marketing sells containers for temporary storage of recyclables nationally through its catalogue.The company wants to simplify pricing and reduce its risk.Green Earth also desires some type of difference in price due to distance.Which type of pricing should the company use?

Many businesses find recessions to be an excellent time to build market share through the use of price shading.

The first step in setting the right price for a new product is to estimate demand,costs,and profits.

Kenmore offered purchasers of any Kenmore brand major appliance a refund of $100 if they mailed Kenmore the receipt showing where and when they had purchased the appliance.What was Kenmore offering?

The U.S.Department of Justice has charged that Samsung,the world's largest DRAM (dynamic RAM)maker,Hynix Semiconductor,Inc. ,Infineon Technologies AG,and Micron Technology,Inc.all conspired to set prices of computer memory between 1999 and 2002.This means the companies did which of the following?

Toronto Blue Jays for 2006,the price of a single ticket in the infield box at a Toronto Blue Jays baseball game was $35. -Refer to Toronto Blue Jays.The effective value of a season pass for the same seat was $2,735,but the buyer was charged $2,241.What were season ticket buyers rewarded with?

What can a marketing manager do to make demand for his or her product more inelastic?

An Ontario-based catalogue retailer sells fireplace equipment such as screens and andirons.Its customers in Ontario are charged one shipping rate,and customers west of the Rockies are charged a different rate.Customers in the Maritime provinces are charged yet another rate.What kind of geographic pricing is the catalogue retailer using?

Which of the following phrases accurately describes psychological pricing?

If the seller pays all or part of the actual freight charges and does not pass them on to the buyer,which type of pricing is the seller using?

Penetration pricing is sometimes referred to as a "market-plus" approach to pricing.

What is the price tactic that requires the purchaser to absorb the freight costs from the shipping point?

Escalator pricing and price shading are two examples of cost-oriented pricing tactics.

When the economy is characterized by high inflation,special pricing tactics are often necessary.One popular cost-oriented tactic is culling low-profit margin products from the product line.Why might this tactic backfire? What two other cost-oriented tactics can be used to guard against inflation? Describe these tactics.