Exam 11: Pricing Products and Services

Brand Dollar Sales Market Share Unit Volume Market Share Red Bull Monster 18 37\% 33\% 33\% Rockstar 7 17 19 18 Other Brands -As the brand manager for Red Bull, what would you conclude from the information provided in the Price Premium Marketing Dashboard above?

Price fixing refers to

All of the following are examples of pricing constraints EXCEPT:

Which one of the following statements regarding bundle pricing is most accurate?

-A shift of the demand curve from D₁ to D₂ in Figure 11-3B above indicates

-Figure 11-6 above depicts a __________.

In response to Duracell's introduction of the Duracell Ultra battery, Energizer introduced an Advanced Formula battery. But unlike Duracell, Energizer priced its batteries at a low initial price to attract the mass market. In this case, Energizer used

Target return-on-sales pricing refers to

Each month, the owner of a carwash pays $2,500 in rent, $500 in utilities, $750 interest on the business loan, an insurance premium of $200, and $250 on advertising on local bus routes. A full-service carwash is priced at $10.50. Unit variable costs for the carwash are $7.50. At what level of revenue will the carwash break-even?

Distinguish between elastic demand and inelastic demand.

What are two special adjustments to the list or quoted price?

-In Figure 11-3B above, the demand curve shifts from D₁ to D₂. This most likely represents

What are the three major steps involved in setting prices?

Which of the following is an example of a price?

Which of the following is a typical example of a fixed cost?

Marketing managers often use break-even analysis to analyze the relationship between total revenue and total cost to determine profitability at various levels of output. What is the break-even formula? Use the formula to calculate how many DVD players a dealer must sell if her fixed costs are $100,000, unit variable costs are $150, and the selling price is $200.

Basic to setting a product's price is the extent of __________. This information is used in estimating the revenues the firm expects to receive.

Companies use a price premium to assess whether their products and brands are priced above, at, or below the market. The price premium is the percentage by which the actual price charged for a specific brand exceeds or falls short of a benchmark established for a similar product or basket of products. This price premium equals:

When a firm offers a very low price on a product to attract customers to a store, and once in the store, the customer is persuaded to purchase a higher-priced item, the practice is referred to as

When Jeremy bought gas, he noticed the convenience store offered him a 2 percent reduction in price if he paid cash rather than if he used his credit card to pay for his purchase. The convenience store was offering him a