Exam 13: B: Creating and Pricing Products That Satisfy Customers

Odd-number pricing is limited to low-priced items.

Seasonal discounts provide price incentives to customers during peak selling seasons.

The width of a product mix is a measure of the number of individual products within each line.

During the decline stage of the product life-cycle, the sales volume decreases sharply because of an increase in the number of competing firms.

BMW's acquisition of the British automaker Rover provides BMW with instant entry into the growing sport-utility vehicle market with the legendary Range Rover line. BMW's purchase is an attempt to widen its product mix.

Random discounting is often predictable so consumers wait to make purchases until they can benefit from the price reductions.

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

A product mix is a combination of all the information a producer uses to sell its product to the public.