Exam 19: Setting the Right Price

Which of the following best describes single-price selling?

What is the basic assumption behind value-based pricing?

It's September and Sophia wants to buy some arts and crafts supplies for an after-school program she is developing for her daughter's elementary school.In her Saturday newspaper was a flyer from Michael's,an arts and crafts retailer.As she looked through the newspaper insert,she noticed that if she purchased three or more bottles of Alene's Tacky Glue,the regular price of $1.50 each was reduced to $1.15 each.She also saw that the store priced its plastic storage boxes at $1.99,$3.99,and $5.99.She thought they would be useful for storing each individual child's projects.On the front page of the flyer was an ad for Funky Girls Gel Pens,something she knew her daughter would love to use.The price at Michael's was $6.99 lower than the price she had found at the other stores that carried the pens.She thought that some of the older girls might like to start a scrapbook and was pleased to find that Michael's had a scrapbook starter kit,which includes scissors,book,pages,and stickers for only $15.The items could be purchased separately for $19.99.The flyer also announced that all flag-related items left over from its Canada Day sale were reduced by 40 percent. -Refer to Art Supplies.Which type of discount is being using to price the tacky glue?

What is the term for cash refunds given for the purchase of a product during a specific period?

It's September and Sophia wants to buy some arts and crafts supplies for an after-school program she is developing for her daughter's elementary school.In her Saturday newspaper was a flyer from Michael's,an arts and crafts retailer.As she looked through the newspaper insert,she noticed that if she purchased three or more bottles of Alene's Tacky Glue,the regular price of $1.50 each was reduced to $1.15 each.She also saw that the store priced its plastic storage boxes at $1.99,$3.99,and $5.99.She thought they would be useful for storing each individual child's projects.On the front page of the flyer was an ad for Funky Girls Gel Pens,something she knew her daughter would love to use.The price at Michael's was $6.99 lower than the price she had found at the other stores that carried the pens.She thought that some of the older girls might like to start a scrapbook and was pleased to find that Michael's had a scrapbook starter kit,which includes scissors,book,pages,and stickers for only $15.The items could be purchased separately for $19.99.The flyer also announced that all flag-related items left over from its Canada Day sale were reduced by 40 percent. -Refer to Art Supplies.What pricing practice was used to price the plastic storage boxes?

What is FOB an acronym for?

Price fixing is clearly illegal in all instances.

What is escalator pricing?

If your favourite mail-order catalogue lists freight charges according to the dollar amount of merchandise purchased,which type of pricing is it using?

Two reasons are given to explain why some companies price their products too,low thereby reducing company profits.What are they?

Marketing managers can use a wide variety of special pricing tactics to fine-tune prices.Name and define five of the special pricing tactics that are legal.For each tactic,give an example of a specific company,industry,or product that would use the tactic.

Pauline LaMour works as a personal organizer.If she were hired to come to your home and organize your closets,she would charge $500-whether the job took her 15 minutes or the entire day.She feels her fee is justified because of her 20 years of experience.Which pricing policy is LaMour using?

Which of the following allows for price increases based on the cost-of-living index or some other formula?

Which of the following factors can a manager ignore when deciding on prices for an entire product line?

Why are consumers required by certain companiesto pay consumer fees?

What activities occur once the marketing manager has established pricing goals? Why are these activities important?

Imagine you are the marketing manager for Tinpot Alley.It manufactures all types of decorative metal work including large plates and porch railings.You are responsible for coming up with a rebate plan.What is a rebate? What different types of rebates could you elect to use? Why would you prefer to use a rebate rather than a simple price reduction?

There are two limousine services that drive customers from communities in Winnipeg to the airport.Whenever one reduces its fare,its competitor reduces its fares by the same amount.This is an example of status quo pricing.

The Toronto Convention and Visitors Association offers tourists a promotion in which they can buy one night in a Toronto hotel,two tickets to a Blue Jays baseball game,two tickets to a theatrical production,and dinner for two at an upscale restaurant for a substantially lower price than if the components were purchased separately.Which pricing technique is the Toronto Convention and Visitors Association using?

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.If you elected to buy a season pass for the same seat,the ticket price was reduced or discounted.This $35 is an example of which type of price?