Exam 11: Pricing Strategy

Which of the following businesses is most likely to use rate-of-return pricing?

For which of the following products is the producer most likely to use cost-plus pricing?

A new device "Sniffer",used for testing alcohol levels in drunken driving suspects,is priced out of the reach of most law enforcement units.Those units that have bought the Sniffer are extremely pleased with its results and the fact that these results are readily accepted in court.There is nothing on the market today that has the accuracy and the portability of the Sniffer.The manufacturer of the Sniffer is likely to be using a(n)_____ pricing policy.

Sales of Noritake dinner plates are high even though a Noritake dinner plate is priced relatively high for its product class.This is because it offers high quality,has special features,and consumers view it as a prestige product.The pricing used by Noritake can be best described as _____ pricing.

Which of the following types of cost-oriented pricing is closely related to markup pricing?

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

The estimated production and sales for a coffee table book on celebrity gardening is 10,000 volumes at a total cost of $100,000.Calculate the sales price for each book if the publisher desires a before-tax return of 25 percent.

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

Setting prices so targeted customers will perceive products to offer greater worth than competitive offerings is called _____ pricing.

Which of the following is the primary device used to outlaw horizontal price fixing?

Which of the following observations about the impact of product considerations on pricing is true?

For which of the following products is the seller most likely to use going-rate pricing?

Charming Inc.is a high-end perfume manufacturer.It slashed the price of its least popular fragrance "Energy" by 5 percent during the last fiscal year.This resulted in a 20 percent increase in the sales of Energy in that time period compared to the year before.Estimate the price elasticity for Energy.

Which of the following describes a disadvantage associated with cost-oriented approaches to pricing?

_____ is most often used to describe the pricing of services that are nonroutine and difficult to "cost" in advance of their completion.

Price discrimination that lessens competition or is deemed injurious to it,is outlawed by the _____ Act.

Which of the following factors influencing pricing decisions pertains to the expected consumption rate of potential buyers,location of potential buyers,and position of potential buyers?

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

Which of the following is a type of psychological pricing strategy?

Pricing a product at competition is called _____ pricing and is popular for homogeneous products.