Exam 11: Pricing Strategy

Jena runs an ice cream cooler at the beach each summer.Her brother does not charge her rent for setting up her ice cream cooler in his stand.Each bar of ice cream costs her $0.20.She adds an additional $0.20 to each bar to pay for electricity for the freezer,napkins,and her time,selling the ice cream finally at $0.40 per bar.Jena uses _____ pricing.

Which of the following observations is true about price elasticity?

Which of the following factors influencing pricing decisions pertains to demand influences for a product?

The pricing strategy in which the seller charges a relatively high price on a new product is called _____.

Which of the following is a demographic factor that influences the pricing decision of a product?

Which of the following kinds of pricing strategies would you expect producers to use for pricing homogeneous products,such as wool,tomatoes,wheat,coal,and bone meal?

Before Kenny and Tessa started their vacation,they had budgeted $70 a night for motels.When the couple went to check-in into a motel for the night,they were pleasantly surprised to learn that the $69 they paid for their room included breakfast for two.Which form of psychological pricing is the motel using?

Which of the following best explains why Frito-Lay's potato chips are priced at 69 cents a bag rather than 70 cents?

A product could be priced relatively low for a product class because it offers value in the form of acceptable quality at a low price.Which of the following products is an example of this value position?

_____ are often in the form of pricing reductions in exchange for the channel member featuring the product in store advertising or on in-store displays.

Sporty Inc.manufactures high-end designer sports shoes.The price of its most popular shoe "Fast" went up by 10 percent during the last fiscal year.Sporty sold 50 percent more units of Fast in that time period compared to the year before.Estimate the price elasticity for Fast.

Which of the following is a psychological factor affecting pricing decisions?

GameCube video game console was launched with an introductory price of $199.95,which was quite low for products of this category.The reasoning behind this low pricing was that the GameCube manufacturer expected competition to move in rapidly.Identify the pricing policy used here.

Before it closed its doors,Montgomery Ward advertised a pair of diamond earrings for $399 that it said had a regular price of $2,199.When the Better Business Bureau examined the incident,it did not find any evidence that the retailer had ever actually offered a pair of earrings at the aforesaid "regular price." Montgomery Ward was found guilty of _____.

Which of the following is an important product consideration in pricing?

Price elasticity (e)= x/percent change in price,where x stands for:

Travel agencies offer vacation packages that include travel,accommodations,and entertainment at a single price to signify value and convenience for customers.This is an example of _____ pricing.

_____ is estimated by dividing relative changes in the quantity sold by the relative changes in price.

Which of the following is true about odd-even pricing?

Under a single policy,Reassurance Inc.,an insurance company,provides insurance such as fire,engineering,healthcare,and property to companies.By doing this,Reassurance aims to: