Exam 13: Pricing Concepts for Establishing Value

When working on pricing,the marketer must carefully consider the objectives of other channel members to ensure:

Julia's is an upscale women's clothing store.Prices are based on customers' beliefs about the value of the clothing.The store focuses on a limited target market and provides excellent customer service.Julia's is using a __________ pricing strategy.

David manages a Shoney's restaurant.He is considering staying open later in the evening.For David,the variable costs associated with staying open longer hours will include all of the following EXCEPT:

What is cross-shopping and what does it mean for marketers' pricing strategy?

Bill is a yacht broker in the southeastern United States.For years he has had difficulty selling large yachts locally because there were few places to dock these boats.Yachts and spaces to dock them are an example of:

When HP first introduced their Inkjet printers,consumers could only buy refill cartridges from HP.HP made significant profits from the sale of replacement cartridges.In this situation,HP logically used a __________ pricing strategy for their printers.

Unlike product,promotion,or place,price is the only part of the marketing mix:

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

__________ occurs when members of the marketing channel collude to control the prices passed on to consumers.

B2B quantity discounts are legal if:

Customers must see value in a product or service before they are willing to exchange time or money to obtain it,but not all customers see the same value in a product.To analyze how many units will be sold at any given price point,marketers draw on:

Customers purchase prestige products or services for the status of owning the products,not just for the functionality.These products may not follow a typical demand curve if:

A demand curve shows the relationship between income and demand.

Because there are only a few firms in markets with oligopolistic competition:

Jason rents rooms in his hotel for an average of $100 per night.The variable cost per rented room is $20.His fixed costs are $100,000 and his target profit is $20,000.For Jason,to earn his target profit,he will need to rent out __________ rooms.

Break-even analysis is useful because it allows managers to:

Why are price wars more common in oligopolies than in pure competition markets?

What type of pricing tactic is being used when several airlines agree to charge the same fare for a single route.

Small business consultants are constantly admonishing would-be entrepreneurs,"Beware of the overhead." Use break-even analysis first with an overhead of $100,000 and second with an overhead of $200,000,and a contribution per unit of $50 to demonstrate this admonition.

If the fixed costs of manufacturing a new cell phone are $10,000,the sales price is $60,and variable cost per unit is $20,the break-even point is: