Exam 11: Pricing Products and Services

A construction company was offered a 3 percent reduction in price off all invoices from a lumber yard for paying them within 10 days of issue. The lumber yard was offering a

Recently, much of the western U.S. experienced a drought condition and water usage was restricted in Denver. Yet, even though most people used less water, the price of water did not drop. When the drought was declared over, the water company raised water prices. However, the residents of Denver did not use less water. Here, water is

Unit volume as a pricing objective refers to

Skimming pricing is a strategy that introduces a new or innovative product by

Cost-plus pricing refers to

A new car dealer can reduce the list price of a new Ford F-150 pickup truck by offering you a __________ of $1,000 for your 1998 Nissan Altima.

What do 60 percent of prospective buyers dread about looking for a new car?

The money or other considerations (including other products and services) exchanged for the ownership or use of a product or service is referred to as __________.

A break-even chart refers to a graphic presentation

A hardware store advertises a 3/8" Black and Decker Power Drill for $29.95. You enter the store intending to purchase the drill. The salesperson informs you that they are all sold out. She tells you that the sale drills were factory seconds and that if you are going to be doing any kind of serious woodworking, you should buy the Model 3309, which sells for $49.99. This scenario has elements of which type of illegal pricing practice?

The manager of a small gasoline station observes that while gasoline sales have been steady, the service side of the business has fallen off, and mechanics are often idle. He decides to offer a promotion, a $20 off coupon for an oil change mailed to 800 households within a two-mile radius. The cost of printing and mailing is $1,000. The normal cost of an oil change is $40. Materials and labor per oil change costs $15. If 200 customers use the coupon, what will be the total profit of the promotion based on the profit equation?

Which of the four approaches does Carmex use to set prices for its products?

To encourage buyers to stock inventory earlier than their normal demand would require, manufacturers often use

Which of the following is a cost-oriented pricing method?

Netflix used to charge $14.99 per month for its movie rental service. However, when Blockbuster introduced the same service at $13.99, Netflix then dropped its price to $13.99. Netflix most likely made this price reduction in an attempt to

Vizio's HDTVs are sold through all of the following types of retailers EXCEPT:

Target profit pricing refers to

The horizontal axis of a demand curve graph represents __________.

Yield management pricing is most consistent with services attempting to deal with

Seasonal discounts are used by manufacturers to