Exam 18: Pricing Concepts

Lower off-season prices and higher peak-season prices for lodging at resorts illustrate the use of yield management as a strategy to generate revenues for a largely fixed-cost industry.

Which of the following market structures involves a heterogeneous product and product differentiation among competing suppliers,allowing the marketer some degree of control over prices?

Modified breakeven analysis combines the traditional breakeven analysis model with an evaluation of:

The Anti-A&P Act was inspired by price competition triggered by the rise of grocery store chains.

Manufacturers attempt to balance consumer expectations of customary prices with the realities of rising costs by increasing overall product size.

The PIMS project revealed that the two most important factors influencing profitability were:

Companies can avoid penalties under the Robinson-Patman Act as long as they can demonstrate that their price discounts and promotional allowances restrict competition.

The PIMS project discovered a strong negative relationship between a firm's product quality and its return on investment.

Explain the two most common cost-oriented pricing procedures: full-cost and incremental-cost.

Which of the following exemplifies a yield management pricing strategy?

A product is priced to sell for $12 with average variable costs of $8.The company expects to earn a profit of $400,000 with its total fixed costs of $120,000.The minimum number of units that must be sold in order to reach this target return is:

Pricing objectives tied directly to meeting prices charged by major competitors emphasize the price element of the marketing mix and focus less strongly on nonprice variables.

When discounts become normal elements of a competitive marketplace,other marketing mix elements gain importance in purchase decisions.

A schedule of the amounts of a good or service that firms will offer for sale at different prices during a specified time period is called _____.

Customary prices are:

Short-run or long-run pricing objectives of achieving a specified return on either sales or investment are called _____.

A schedule of the amounts of a good or service that will be offered for sale at different prices during a specified period is referred to as _____.

Which of the following actions is most likely to be taken by a company in order to implement the value pricing objective?

When the elasticity of demand or supply is greater than 1.0,that demand or supply is said to be:

The A.G.Harding company has been charged with price discrimination under the federal Robinson-Patman Act.Which of the following would be the best defense against the charge?