Exam 12: Pricing Concepts and Management

Hotels try to price rooms to maximize resources by quickly adapting to changes in demand. Part of this involves anticipating consumer behavior and calculating a number of different factors, including demand for rooms at a particular time period, likely length of stay, types of rooms likely to be requested, etc. It wants to be able to sell rooms at the right price to the right people. This pricing strategy is an example of

Which of the following pricing objectives sets prices to recover cash as quickly as possible?

What are the terms of F.O.B. pricing?

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. What is the breakeven point in dollar sales volume?

The Venue Racquet Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for Venue?

Which of the following is not a discount provided to business customers?

All of the following are psychological techniques except

To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called

In some cases, prices are assigned to goods on the basis of nothing more than custom.

Department stores such as Kohl's and Macy's are interested in learning how much their competitors are charging for similar merchandise. Which of the following practices might these retailers utilize to identify competitors' prices?

Which pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry?

Brandon orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Brandon should have been certain that the order terms were

When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called

If Safeway Foods advertises 2-liter bottles of Pepsi for 89 cents to generate store traffic that will purchase other items at regular prices, the grocer is using

Random discounting means discounting various products on a systematic basis.

Companies use dynamic pricing to balance out supply and demand.

You are a senior sales and marketing analyst for a major retailing firm in Wisconsin. The marketing manager just stopped by your office with a very frustrated look on her face. She tells you that she is confused as to why, every time the company raises the sales price of its products, total revenue for the company declines.??Based on this information, which of the following explanations do you give her for why this situation occurs?

Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's ____ objectives and ____ objectives.

Due to the ease of comparison shopping through the Internet, many marketers are focusing on the value of their products in communications with customers.

____________ is setting the price lower than competing brands in order to enter a market and quickly gain a significant share of the market.