Exam 11: Pricing and Credit Strategies

The costs of merchandise used in computing markup include wholesale price,incidental costs,and profit minus any discounts.

Baseball cards usually sell for 10 cents each.The Card Shop advertises them at "12 for $1.00." This is:

Because installment credit is so profitable for the small business,most small businesses finance themselves.

When a retailer routinely prices goods at $9.97 and $7.36 rather than $10.00 and $7.50,the retailer is using:

________ pricing is when the base product is not functional without the appropriate accessory.

Before deciding to use credit as a competitive weapon,small business owners must make sure that the firm's cash position is strong enough to support additional pressure.

Customers that sell small-ticket items frequently offer their customers:

The prices a small business charges influence its image in the marketplace.

The most commonly used pricing technique for manufacturers is:

The use of credit cards increases the probability,speed,and magnitude of customer spending.

Price is a measure of what the customer must exchange to obtain goods and services and is an indicator of value to the customer.

Even though cost-plus pricing is simple,it does not encourage a small business to use its resources efficiently.

Which price strategy is mostly used for moving stale,outdated,damaged merchandise?

A skimming pricing strategy sets a relatively high price for a product to appeal to the segment of the market which is not sensitive to price.

________ is grouping together several products or services,or both,into a package that offers customers extra value at a special price.

Three objectives of new product pricing are:

For a service firm,labor and materials comprise the largest portion of the cost of the service provided.

The skimming pricing strategy is used when there is a lot of competition in the market.

Price lining,leader pricing,and odd pricing are three geographic pricing strategies that can be used for established products.

Price ________ usually begin when one competitor believes that they can achieve a higher volume through lower price,or they believe that they can exert enough pressure on other competitors' profits to drive them out of business.