Exam 16: Pricing Concepts and Strategies

In comparing the top four brands in a market segment, what did the Profit Impact of Market Strategies Project (PIMS) research data reveal was the average, after-tax return on investment percentage that the leading brand generates?

For the purpose of transfer pricing, what is any part of the organization to which revenue and controllable costs can be assigned, such as a department, referred to as?

Indonesian companies manufacture inexpensive yet well-crafted leather belts, handbags, shoes, and apparel.Subsidized by the Indonesian government, the companies begin dumping these products on the Italian and French markets.The Italians respond by taxing the products 70 percent, which would be considered a tariff in this instance.

When do online marketers run the risk of cannibalization?

A retailer is considering expanding to a second location.Which of the following might the retailer use in a breakeven analysis to examine the sales level needed to achieve expansion?

What is it called when a manufacturer offers an intermediary a percentage discount off the list price of products it handles in exchange for performing certain wholesaling activities?

Full-cost pricing allows the marketer to remove arbitrariness from the process and allocate fixed expenses (overhead) realistically across the entire line of products being sold by a firm.

In what type of market structure would a producer have the LEAST amount of flexibility in setting prices?

The price of a product always involves money as the medium that facilitates the exchange.

Lysol sanitizing wipes entered the market at a low sales price and were supported by heavy couponing.As the initial trial period passed, the pricing slowly rose and the couponing became more infrequent.This activity is an example of penetration pricing.

A manufacturer's list price must incorporate the costs incurred by channel members in performing required marketing functions and expected profit margins for each member.

When some customers pay more than others for the same product this is referred to as price fixing.

Step outs occur when one company refuses to participate in price escalation between competitors.

What do you need to know to calculate the breakeven point for a product?

Since many firms begin penetration pricing with the intention of increasing prices in the future, success depends on generating numerous trial purchases.

Modern accounting procedures provide managers with a clear understanding of cost structures so those managers can identify demand and develop accurate measures of demand in real-world settings.

Which of the following is a characteristic of the price-quality relationship, in the absence of other cues?

Which of the following pricing strategies tries to remove price as a strategic weapon?

When is demand said to be inelastic?

Responding to the weakening of their control over prices brought about by e-commerce, marketers have begun to bundle a host of additional goods and services with the tangible products they offer their customers.