Exam 13: Building the Price Foundation

__________ occurs when shoppers go to a store,obtain the store price of a product,scan its SKU or bar code with a smartphone camera,and go online to compare prices with those of selected competitors.

A BOGO offer is retail slang that means

In a snack vending machine,consumers can choose one of up to of 20 choices.These snacks are

If competitive market circumstances are such that there is almost no price competition,no product differentiation,and the only advertising informs prospects that the product is available,then the competitive market in this industry must be __________.

The owner of a small restaurant that sells take-out fried chicken and biscuits pays each month $2,500 in rent,$500 in utilities,$750 interest on his loan,insurance premium of $200,and $250 on advertising on local buses.A bucket of take-out chicken is priced at $9.50.Unit variable costs for the bucket of chicken are $5.50.How many small buckets of chicken does the restaurant need to sell to break-even each month?

Pricing objectives refer to

A demand curve refers to a graph that relates

Marginal cost refers to

A demand curve graph typically appears as

Occasionally,prices may rise later in the product's life cycle.This is often due to

Total cost refers to

Figure 13-2 above represents the six steps in setting price."F" represents the step at which a firm would

The maximum quantity of products consumers will buy at given price is shown by

Susan O'Rourke hired an attorney to represent her in a court case involving an auto accident.The attorney charged O'Rourke a $2,000 retainer fee for his services.Terry Thomas needed a haircut-the local stylist charged him $12 for her services.Aaron Mathison mowed his neighbor's lawn;in exchange,the neighbor roto-tilled Mathison's garden.The attorney fees paid by O'Rourke,the $12 charged by the hair stylist,and the exchange of lawn mowing for garden tilling are all examples of

A reference value __________.

For years,a local "greasy spoon" diner had customers lining up around the building for breakfast.When the city announced that it was building an off ramp from the highway that would conceivably double his customer traffic,the proprietor was delighted.Having saved enough in previous years,he was certain it could hold him over through the three-month construction.Unfortunately,construction delays continued for an additional six months and the work is still in progress.The best pricing objective at this point for the diner's owner would MOST LIKELY be __________.

There are a lot of skateboards on the market,but the BMW Streetcarver is the only one with stabilizers and wheel design based on BMW's automobiles.This technology gives the BMW Streetcarver better control at high speeds and around sharp turns than any other brand.The skateboard is priced at $495,which leaves many consumers (especially young males)who might want to buy the Streetcarver unable to afford it.This inability to pay for the high-priced BMW-made skateboard shows the affect of __________ on sales.

A consumer's near-instantaneous access to competitor's prices for the same offering is referred to as

Market share is the ratio of the __________ to those of the industry,including the firm itself.

Acme Shoe Company sells heel replacement kits for men's shoes.It has fixed costs of $6 million and unit variable costs of $5 per kit.Suppose a consultant tells Acme that it can sell 750,000 heel repair kits.What price must Acme charge to achieve a profit of $2.5 million?