Exam 12: Pricing Concepts and Management

Tammy works at ITZ, a new makeup brand. Her company has decided that they want to lead the makeup industry in product quality. They have assessed the market and determined that women will associate higher-priced makeup with being higher in quality. What is the next step that Tammy's company must do?

The pricing of Origins makeup, which is priced considerably higher than brands such as Cover Girl, Revlon, and Maybelline, is used to communicate ____, which is the company's primary pricing objective.

Cost-based pricing results in a high price when demand is high and a low price when demand is low.

The effectiveness of demand-based pricing often depends on a marketer's ability to determine all the costs associated with the product.

Scenario 12.1 Use the following to answer the questions. Concession Supply sells hotdogs, buns, and nacho ingredients to several major league ballparks across the country. Currently, Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200, Selling price = $16, and Variable costs = $6. -Refer to Scenario 12.1. To break even, Concession Supply should sell ____ cases of hot dogs per day at Wrigley Field.

If the terms of a business exchange are 2/10 net 30, this means that the transaction

_____________ is pricing a product at a moderate level and positioning it next to a more expensive model or brand.

Which of the following is true about the target market's evaluation of price?

Two types of new-product pricing are price skimming and product-line pricing.

Which of the following is an advantage of utilizing penetration pricing?

Everything But Water, a retailer of swimwear, employs a commonly used cost-based pricing method called

Blue Bunny produces a variety of ice cream flavors and lines of varying qualities. The higher quality ice cream varieties are priced higher than the basic ones. Blue Bunny is using ____ to price its ice cream.

What assumption does breakeven analysis make that limits its overall usefulness?

If Coca-Cola sets its twelve-pack price to match the price charged by PepsiCo, Coca-Cola is using which of the following pricing methods?

Uber uses a pricing strategy based on real-time market conditions. It charges less in periods of low demand and more during periods of high demand. Sometimes these prices double or triple during periods of high demand. Uber argues that these higher prices motivate more drivers to pick up passengers, thus increasing the supply of drivers needed to handle the additional demand. This demand-based pricing strategy is an example of

When a satellite dish company uses bundling to combine phone, dish, and broadband Internet access prices, it is attempting to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock." This is an example of using a ____ pricing strategy.

Olivia has been doing research for a smartphone manufacturing company. She has just been reviewing the results of several focus groups and has found that for customers, value is a function of the product's

Elise Stanton, of North Central Novelties, reduces the price of games sold to Pride's Entertainment by 10% to allow for expenses associated with Pride's promoting the games to consumers. This is an example of a ____ discount.

Cost-based pricing strategies result in a percentage being added to the cost of the product.