Exam 13: Pricing Concepts for Establishing Value

A __________ strategy involves accurately measuring all the factors needed to predict sales and profits at various price levels,so that the price level that produces the highest return can be chosen.

In a __________ pricing tactic,sellers advertise low prices and then aggressively pressure customers to purchase higher-priced versions of the product advertised with the low price.

Diana owns a boutique specializing in ball gowns.Sales are stable and Diana feels it is time she had a 20% increase in her salary.If Diana takes this increase in compensation,it will decrease the breakeven quantity of gowns she needs to sell on a monthly basis.

Assume the demand for electricity,a necessity with few substitutes,is -0.2.If the electric company raised its rates by 10 percent,we would expect:

The major objectives associated with a market penetration pricing strategy are to:

How can brand loyalty affect the price elasticity of demand for a firm's products?

In __________,many firms provide similar products that are considered substitutes for each other.

__________ price fixing occurs when competitors collude to control prices,and __________ price fixing occurs within a marketing channel to control prices passed on to consumers.

One problem in relying on price elasticity and demand curves when setting prices is that:

The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the:

Variable costs,primarily labor and materials,are those costs that vary with:

If the price for a product increases,the demand for the complementary product will:

Bill desperately needed tires for his car,and he found an ad with an incredibly low price.When he got there,he found out that those had been sold out,and he was pressured into buying tires that were more expensive than he wanted.Bill found out later that Marcelo had had the same experience at the store a few weeks earlier.It's quite possible that both Bill and Marcelo had become the victim of a deceptive pricing tactic known as:

B2B quantity discounts are legal if:

In a(n)__________ pricing strategy,marketers rely on the promotion of sales,during which prices are temporarily reduced to encourage purchases.

Why is it more fun and challenging for a marketer to be part of a market characterized by monopolistic competition than be part of one characterized by pure competition?

How have price comparison websites like Pricegrabber.com affected marketers' pricing strategies?

In U.S.markets,there are many substitute products for Fruit Loops cereal,suggesting the price elasticity of demand for Fruit Loops is elastic.

Production of the De Lorean car,made famous in the film,"Back to the Future," never got above 25,000 units during its lifetime.Automobile industry analysts estimate that production of a car needs to reach around 300,000 units to achieve the __________,a decrease in unit cost as product volume increases.

Variable costs change with: