Exam 16: Pricing Concepts

Which of the following pay for every activity of the company?

What is another name for on-line price comparison engines?

According to the text,which of the following statements about price is true?

With respect to pricing,what has retailers' presence on the Internet resulted in?

What are yield management systems used for?

When a seller determines the selling price by adding to cost an amount for profit and expenses not previously accounted for,what type of pricing is the seller using?

A company using market share pricing has what type of pricing objective?

Yield management systems can be used only by service industries.

Sunny Florist is a flower shop that has recently moved to a new,larger location.At this new location,it has been unable to attract sufficient customers.Bonita Cho,its owner,does not have the cash to pay the current loan installment due on the building and inventory.Cho has decided to reduce all merchandise prices by at least 50 percent for a weekend sale so she can at least make her loan payment.Her pricing objective can be classified as which of the following?

Last quarter Abingdon Company sold 1,000 decorative decals for $1 each,Cedar Decaliania sold 200 decorative decals at $4 each,Creative Decals sold 500 decals at $2 each,and Donnelly,Inc.sold 300 decals for $4 apiece.Assuming the four companies are the only firms competing in the decorative decal market,calculate unit and dollar market share for each company for last quarter.For each company,which market share figure might be used in an advertisement for that company?

Maximization of sales is an appropriate and useful long-term pricing objective for most firms.

Aviation fuel for WestJetLite Airlines represents what type of cost?

As a short-term pricing objective,which of the following can be effectively used on a temporary basis to sell off excessive inventory?

The typical break-even model assumes a given fixed cost and which of the following?

List the three types of elasticity of demand.What would the demand curve for each look like when graphed?

Imagine you're planning an after-symphony fund-raising party,and you need a life-size grand piano cake.Or you are a developer proposing a new shopping centre to a group of investors,and you want to serve a cake shaped like an architectural rendition of the centre.Is this impossible? No,you just need to contact Cecilia Villaveces Cakes.She actually built a life-size grand piano cake for a gala in Toronto.You can expect to pay anywhere from $75 to $10,000 for one of Cecilia's creations,depending on complexity of design and size.She uses only the best ingredients,and no two cakes are ever quite alike. -Refer to Specialty Cakes.To set the price of her cakes,Cecilia simply doubles her costs,which often include many hours of labour and expensive raw materials.What is this method of price setting called?

How do consumers use the price-quality relationship to evaluate goods? How can marketers take advantage of this consumer response?

In a sluggish economy,consumers will buy even the most modest of products with the same discretion once shown only to big-ticket items,such as computers,air fares,and designer clothes.The result is a growing popularity of cheaper private-label products,and the likelihood that price wars among consumer goods could lead to the same kind of consolidation that occurred in the airline and electronics industries.Moreover,analysts say changing buying habits will force premium brand marketers to lower their prices to protect their positions.These companies may also upgrade products to distinguish them from private labels and promote their brands more aggressively than ever. One analyst says that consumers are forcing product innovation.Products have to be sold on merit.As a result,there will be fewer brands of significance,but the significant brands will be stronger.Brand loyalty is believed to exist only when,or if,value is provided.How do the significant brands compete? One analyst says that a combination of sensible pricing and innovation with a strong brand name can stabilize market share.Reformulated or repackaged products are typical examples of innovative attempts to solidify market share. -Refer to Consumer Buying Habits.Changing consumer buying habits will force premium brand marketers to lower their prices to protect their positions (maintain the same revenue).This suggests that demand for premium products is which of the following?

Break-even analysis determines what sales volume must be reached for a product before the company's total revenue equals total costs.

Generally speaking,a firm can set its price higher when which of the following is true?