Exam 11: Pricing Products and Services

-Suppose you are the owner of a picture frame store. Let's assume that the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting). Figure 11-6 above shows that by selling 800 picture frames, you will

What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?

When microwave ovens were in the introduction stage of their product life cycle, some consumers were willing to pay exorbitant prices for these innovative ovens. Taking advantage of this strong consumer desire, marketers set the price for microwave ovens at the highest initial price possible. Marketers of microwave ovens used a __________ pricing strategy.

A price reduction given when a used product is part of the payment on a new product is referred to as a __________.

Predatory pricing is

A firm may forgo higher profit on sales and follow which of the following pricing objectives because it wants to recognize its stakeholder obligations?

Which of the following pricing techniques is most sensitive to customers' responses to price?

Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors is referred to as __________.

All of the following are examples of pricing objectives EXCEPT:

Marketers using a flexible-price policy should take care to avoid

The pricing strategy that is almost the exact opposite of skimming pricing is

A negative aspect of selecting unit volume as a pricing objective is that

All of the following are demand factors EXCEPT:

There are four common approaches to selecting an approximate price level. List and provide a brief description for each one.

All of the following are profit-oriented approaches to select an approximate price level EXCEPT:

A skimming pricing policy is likely to be most effective when

Vizio, Inc. is the largest contender in the North American __________ market.

Brand Dollar Sales Market Share Unit Volume Market Share Red Bull Monster 18 37\% 33\% 33\% Rockstar 7 17 19 18 Other Brands -The Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks. What is the price premium for Red Bull in 2009?

A custom tailor wishes to use target profit pricing to establish a price for a custom-designed business suit. Assume variable cost is $200 per suit, fixed cost is $44,000, and the target profit is $50,000 based on a volume of 50 suits. What price should be charged for a typical custom suit?

To encourage retailers to pay their bills quickly, manufacturers offer them