Exam 11: Pricing Products and Services

In one of its least favorite actions, Amazon.com was caught fiddling with its prices. Avid DVD buyers, buying in quantity for resale, found that the online retailer was offering different customers different prices for the same DVD, and complained vociferously. Company officials admitted that the company was trying to see how much it could charge for an item before buyers balked. Amazon was caught attempting

A reduction from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called

A conspiracy among firms to set prices for a product is referred to as

Tara is enrolled for spring semester at college. The tuition is $6,000, but she has a scholarship for $1,000 as well as a work-study grant of $1,500. The health fees and student activity fees are $150 for the semester. What is the final price that Tara will pay for the spring semester?

A box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry for 10 cents more than the regular price of the dishwasher detergent is an example of __________ pricing.

The first Apple iPhone was introduced in 2007 at an initial price of $600. People waited in line overnight so they could be one of the first to own this unique smartphone. Which pricing strategy did Apple use to help recoup its research and development costs for the smartphone?

Which of the following statements regarding sales goals is most accurate?

To increase value, marketers may __________, decrease price, or do both.

What is standard markup pricing and when would it be used?

The total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and variable cost, is referred to as

Yield management pricing refers to

To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives __________ discounts.

-What pricing strategy did the architectural firm use to set the construction price for the Rock and Roll Hall of Fame, which is shown in the photo above?

Explain predatory pricing.

Determining cost, volume, and profit relationships would occur during which stage of the price-setting process?

The sum of the expenses of the firm that change with the quantity of the product that is produced and sold is referred to as

List four key factors used to estimate demand.

Cash payments or an extra amount of free goods awarded sellers in the channel for undertaking certain advertising or selling activities to promote the product is referred to as a

Most consumers realize that the quality of diamonds varies, and most believe the higher the price of a diamond, the higher its quality. This is an example of price influencing the perception of overall quality, and therefore __________ to consumers.

Penetration pricing is considered to be a __________ approach to pricing.