Exam 11: Pricing Strategy

Leverage Inc. and its competitor, Allen Motors Co., were charged for conspiring to keep the end-user price for hatchback cars artificially high. In other words, the two automobile manufacturing companies were charged for:

Which of the following is an environmental influence on pricing decisions?

Pricing a product at the average price charged by the industry is called _____ and is popular for homogeneous products.

Bundle pricing is a psychological pricing strategy in which:

Which of the following is the last stage in the general pricing model?

The estimated production and sales for a coffee table book on celebrity gardening is 10,000 volumes at a total cost of $100,000. Calculate the sales price for each book if the publisher desires a before-tax return of 25 percent.

Which of the following observations is true of price elasticity?

Price elasticity is measured by:

Which of the following is true of product considerations in pricing?

Heidi, the marketing manager of a cosmetic manufacturing company, decides to fix the price of a new perfume at $89.99. She believes that the odd pricing of the product will encourage potential buyers to think of the product as less expensive. Which of the following factors has Heidi considered when making her pricing decision?

Which of the following products is most likely to be priced using the prestige pricing strategy?

_____ are payments to retailers to get them to stock items on their shelves.

In the context of product considerations in pricing, _____ is an approach to pricing in which a seller charges a relatively high price on a new product and is used when demand for the product is price inelastic.

How is a skimming policy different from a penetration policy?

The marketing manager of a doll manufacturing company is tasked with setting the price of the company's new range of collectible dolls. He decides to consider the psychological factors related to pricing and sets the price of each doll at $300. Which of the following questions would the marketing manager have considered when making his decision?

In the context of government regulations, which of the following is the primary device used to outlaw horizontal price fixing?

_____ is estimated by dividing relative changes in the quantity sold by the relative changes in price.

Which of the following is an example of an environmental influence on pricing decisions?

Under a single policy, Reassurance Inc., an insurance company, provides insurance covering areas such as healthcare, accident, and property to independent corporations. By doing this, Reassurance aims to:

Which of the following is true of the advantages of cost-oriented pricing?