Exam 11: Pricing Products and Services

When estimating demand, price is not the only factor to be considered. Three other elements emphasized by economists are consumer tastes, price and availability of similar products, and

A penetration pricing policy is most likely to be effective when

Which of the following statements about the factors that influence demand is true?

A maximizing current profit objective implies that a company chooses to

Pricing constraints refer to

All of the following are legal or ethical considerations when setting a final price EXCEPT:

Target pricing refers to

Reductions from list or quoted prices to buyers for performing some activity are referred to as

Hallmark was an official supplier at the Winter Olympics. Hallmark presented each Olympic winner with a special bouquet of roses designed to resemble the Olympic torch. Consumers could buy a smaller version of this bouquet at the Hallmark website for $74.95. The Olympic bouquet contained two dozen yellow roses, yet one could buy two dozen yellow roses for less than $35 at most supermarkets. With the Olympic bouquet Hallmark appealed to flower buyers that wanted to make a statement, so it used which demand-oriented pricing approach?

Three different objectives relate to a firm's profit, which have different implications for pricing strategy. The three profit-oriented objectives include managing for long-run profits, maximizing current profit objectives, and __________.

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

If you wanted to buy a McDonald's Big Mac, small fries, and a small drink separately, it will you cost you $6.19. However, if you purchased these three items together as part of the firm's Extra Value Meal package, you would pay only $4.39, savings 80 cents. This "Extra Value Meal" price serves as __________ to you and other consumers, who compare the costs and benefits of substitute items to a bundle containing those items.

When is skimming pricing an effective strategy?

Lady Marion Seafood, Inc. sells 5-pound packages of Alaskan salmon. Assume that its unit variable cost per package is $30 and its fixed cost is $250,000. It wants a target profit of $38,000 based on a volume of 16,000 packages. What should the firm charge for a 5-pound package of salmon?

All of the following statements about standard markup pricing are true EXCEPT:

What type of discount to resellers is based in part on where they are in the channel?

With profit-oriented approaches to pricing, a price setter may choose to balance both __________ and __________ to set price.

Swedish company Asko, which prides itself on manufacturing and marketing some of the best-built and most expensive appliances in the world, would probably use which competition-oriented pricing approach?

The pricing approach that: (1) estimates the price that ultimate consumers would be willing to pay for a product; (2) works backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers; and (3) results in the manufacturer deliberately adjusting the composition and features of the product to achieve the price to consumers is referred to as __________.

-In Figure 11-6 above, which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store, the area CGD represents the firm's