Exam 11: Pricing Products and Services

Deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well, is referred to as

Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product is referred to as a

What is the difference between a movement along a demand curve and a shift of a demand curve?

A trade-in allowance refers to

Barter is the practice of exchanging products and services for other products and services rather than for __________.

The sum of the expenses of a firm that is stable and does not change with the quantity of the product that is produced and sold is referred to as

The key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point. Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) profit-oriented; and (4) __________ approaches.

The unit variable cost (UVC) equals variable cost (VC) divided by __________.

Prestige pricing refers to

Two types of adjustments to list or quoted price are

The use of special fees and surcharges is driven by consumers' zeal for __________ combined with the ease of making price comparisons on the Internet.

The key to setting a price for a product is finding an approximate price level to use as a reasonable starting point. Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) __________; and (4) competition-oriented approaches.

To increase value the most, marketers should

Setting one price for all buyers of a product or service is referred to as __________.

A firm's profit objective is often measured in terms of ROI. The acronym ROI stands for __________.

The owner of a take-out fried chicken and biscuits restaurant pays each month $2,500 in rent, $500 in utilities, $750 loan interest, $200 insurance premium, and $250 on local bus advertising. A bucket of chicken is priced at $9.50. Variable costs for the bucket are $5.50. How many buckets of chicken does the restaurant need to sell to break-even each month?

List four of the seven demand-oriented approaches to selecting an approximate price level and define what they are.

The ratio of perceived benefits to price is referred to as

Price discrimination is illegal under the

Which of the following statements regarding odd-even pricing is most accurate?