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Flexible Pricing Chart -Consider the dynamic pricing chart above, which shows the results of a National Bureau of Economic Research study of 750,000 car purchases. The data indicate that some groups of car buyers, on average, paid roughly $105, $423, and $483 respectively for a new car in the $21,000 range than the typical purchaser. Who are the car buyers in B? A) women B) the elderly C) Hispanics D) African Americans E) Asian Americans Flexible Pricing Chart -Consider the dynamic pricing chart above, which shows the results of a National Bureau of Economic Research study of 750,000 car purchases. The data indicate that some groups of car buyers, on average, paid roughly $105, $423, and $483 respectively for a new car in the $21,000 range than the typical purchaser. Who are the car buyers in B?


A) women
B) the elderly
C) Hispanics
D) African Americans
E) Asian Americans

F) A) and D)
G) A) and B)

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Trade discounts are offered to resellers in the marketing channel on the basis of the marketing activities they are expected to perform in the future and


A) the frequency of the order.
B) where they are in the channel.
C) when orders are placed during the year.
D) the length of the relationship with the manufacturer.
E) the size of the order.

F) C) and E)
G) B) and D)

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Loss-leader pricing refers to


A) a pricing method where the price the seller charges is below its customary price to attract customers.
B) setting a low initial price and gradually but consistently increasing that price so as not to antagonize the consumer.
C) deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well.
D) a method of pricing based on a product's tradition, standardized channel of distribution, or other competitive factors.
E) pricing a product between 8 and 10 percent lower than nationally branded competitive products.

F) A) and C)
G) A) and D)

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A __________ approach often changes prices based on time, day, week, or season.


A) skimming pricing
B) bundle pricing
C) yield management pricing
D) target return on investment pricing
E) standard markup pricing

F) B) and C)
G) D) and E)

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Give an example of yield management pricing and explain why it is used.

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Yield management pricing is charging dif...

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Setting different prices for products and depending on individual buyers and purchase situations is referred to as


A) price lining.
B) a flexible-price policy.
C) customary pricing.
D) price fixing.
E) discretionary pricing.

F) B) and E)
G) A) and E)

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Standard markup pricing refers to


A) adjusting the price of a product so it is "in line" with that of its largest competitor.
B) setting the price of a line of products at a number of different price points.
C) setting prices to achieve a profit that is a specified percentage of the sales volume.
D) increasing the price slightly to protect against undue profit losses from unforeseen environmental forces.
E) adding a fixed percentage to the cost of all items in a specific product class.

F) A) and B)
G) A) and C)

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Discounts refer to reductions from the __________ that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller.


A) final price
B) list price
C) wholesaler's cost
D) manufacturer's cost
E) retailer's cost

F) A) and E)
G) D) and E)

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Your local instant photocopying service charges 10 cents a copy up to 25 copies, 9 cents a copy for 26 to 99 copies, and 8 cents a copy for 100 copies or more. What kind of adjustment to its list or quoted price of 10 cents per copy is the photocopying service using?


A) experience curve pricing
B) loss-leader pricing
C) a quantity discount
D) a promotional discount
E) everyday low pricing

F) C) and D)
G) A) and B)

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The __________ equation = (Unit price × Quantity sold) - Total cost.


A) total revenue
B) variable cost
C) net present value
D) profit
E) break-even point

F) D) and E)
G) A) and E)

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The reward a manufacturer gives to wholesalers and retailers for marketing functions they will perform in the future is referred to as __________.


A) seasonal discounts
B) cash discounts
C) promotional allowances
D) trade discounts
E) trade-in allowances

F) B) and E)
G) A) and E)

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Skimming pricing is considered to be a __________ approach to pricing.


A) demand-oriented
B) cost-oriented
C) profit-oriented
D) competition-oriented
E) service-oriented

F) All of the above
G) A) and E)

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An ad campaign by Suave shampoo asked television viewers to identify the heads of hair of women who used Suave shampoo and conditioner and those that used the much more expensive salon hair-care products. The idea of the ad was that no one could tell which woman used the much cheaper Suave brand. By making price its selling point, Suave is most likely using __________.


A) customary pricing
B) loss-leader pricing
C) prestige pricing
D) skimming pricing
E) below-market pricing

F) A) and D)
G) A) and C)

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Four cost concepts are important in pricing decisions: total cost, variable cost, unit variable cost, and __________.


A) dividend cost
B) liquidity cost
C) discretionary cost
D) fixed cost
E) elastic cost

F) None of the above
G) D) and E)

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A demand curve graph typically appears as


A) a parabola with the apex representing the highest price that can be charged without losing customers.
B) a diagonal line going from upper left to lower right demonstrating that as price goes down, demand goes up.
C) an inverted parabola with the lowest point representing the lowest price that can be charged and still meet the company's profit objectives.
D) a diagonal line going from lower left to upper right demonstrating that as prices go up, demand goes up proportionately.
E) two intersecting lines that identify the point at which supply and demand are exactly the same

F) B) and E)
G) A) and D)

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The first Apple iPad was introduced in 2010 at an initial price of $650 for the 16 GB version. People waited in line overnight so they could be one of the first to own this unique tablet device. Which pricing strategy did Apple use to help recoup its research and development costs for the iPad?


A) price lining
B) penetration pricing
C) skimming pricing
D) customary pricing
E) target pricing

F) B) and D)
G) A) and B)

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Skimming pricing refers to


A) setting the lowest initial price possible when introducing a new or innovative product in order to skim sales from competitors.
B) setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product.
C) setting a low initial price on a new product to appeal immediately to the mass market.
D) the practice of replacing promotional allowances with higher manufacturer list prices.
E) setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

F) A) and B)
G) All of the above

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What is the difference between fixed costs and variable costs?

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Fixed cost is the sum of the expenses of...

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The four types of discounts are


A) quantity, trade-in, promotional, and cash.
B) quantity, seasonal, trade (functional) , and cash.
C) quantity, seasonal, promotional, and FOB.
D) cash, trade-in, seasonal, and promotional.
E) trade-in, promotional, geographic, and functional.

F) A) and D)
G) B) and D)

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 Brand  Dollar Sales Market Share  Unit Volume Market Share  Red Bull 2010200920102009 Monster 1837%33%33% Rockstar 7171918 Other  Brands 37100%38100%40100%40100%\begin{array} { | l c c c c | } \hline \text { Brand } & { \text { Dollar Sales Market Share } } &&{ \text { Unit Volume Market Share } } \\\hline \text { Red Bull } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 0 9 } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 0 9 } \\\hline \text { Monster } & 18 & 37 \% & 33 \% & 33 \% \\\hline \text { Rockstar } & 7 & 17 & 19 & 18 \\\hline \begin{array} { l } \text { Other } \\\text { Brands }\end{array} & \frac { 37 } { 100 \% } & \frac { 38 } { 100 \% } & \frac { 40 } { 100 \% } & \frac { 40 } { 100 \% } \\\hline\end{array} -The Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks. What is the price premium for Monster in 2010?


A) -12.5%
B) -7.5%
C) -5.3%
D) 0%
E) 15.2%

F) A) and B)
G) All of the above

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Showing 161 - 180 of 407

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