Question 1

Explain the concept of trial pricing.Why would a retailer implement this pricing strategy?

Accepted Answer

The answer of Explain the concept of trial pricing.Why would...

Question 2

Explain the difference between elastic demand and inelastic demand.

Accepted Answer

The answer of Explain the difference between elastic demand and...

Question 3

What is the rationale for a store advertising the sale of one item at a price that may be potentially lower than the cost of the item to the store?

Accepted Answer

The answer of What is the rationale for a store...

Question 4

The simplest pricing method is break- even pricing: adding a standard markup to the cost of the product.

Accepted Answer

Break-even pricing involves setting a price to cover the cost of production without making a profit, while adding a standard markup to the cost of the product is known as cost-plus pricing, not break-even pricing.

Question 5

Compare F.O.B.origin pricing and F.O.B.delivered pricing.

Accepted Answer

The answer of Compare F.O.B.origin pricing and F.O.B.delivered pricing....

Question 6

What are the two types of price fixing? Briefly define each.

Accepted Answer

The answer of What are the two types of price...

Question 7

Break- even analysis provides a way for marketers to look at cost and demand at the same time.

Accepted Answer

The answer of Break- even analysis provides a way for...

Question 8

How do consumers benefit from price bundling?

Accepted Answer

The answer of How do consumers benefit from price bundling?...

Question 9

How does the airline industry implement the yield management pricing strategy?

Accepted Answer

The answer of How does the airline industry implement the...

Question 10

To determine the break- even point,a firm first needs to calculate the contribution per unit.What does this mean?

Accepted Answer

The answer of To determine the break- even point,a firm...

Question 11

All fifty U.S.states consider loss leader practices to be wrong and have passed legislation called "unfair sales acts," also called "unfair trade practices acts."

Accepted Answer

Not all fifty U.S. states consider loss leader practices to be wrong and not all have passed legislation called "unfair sales acts" or "unfair trade practices acts." Some states may have similar laws but they may be named differently.

Question 12

If demand is elastic,will sellers consider lowering their prices? Explain your answer.

Accepted Answer

The answer of If demand is elastic,will sellers consider lowering...

Question 13

A demand curve never appears on a graph as a straight line.

Accepted Answer

A demand curve can appear as a straight line if the market exhibits perfect elasticity or perfect inelasticity. However, in most real-world situations, demand curves have a curve shape due to diminishing marginal utility and other factors.

Question 14

Cellular phone service providers typically offer customers a set number of minutes for a monthly fee plus a per- minute rate for extra phone usage.What is the pricing strategy being implemented by these cellular phone service providers?

Accepted Answer

The answer of Cellular phone service providers typically offer customers...

Question 15

A company in an industry characterized by monopolistic competition is most likely to adopt status quo pricing objectives.

Accepted Answer

The answer of A company in an industry characterized by...

Question 16

Explain how prestige products may relate to some customers' feelings of self- worth.What is an example of a prestige product?

Accepted Answer

The answer of Explain how prestige products may relate to...

Question 17

Explain the concept of opportunity cost,giving at least one example.

Accepted Answer

The answer of Explain the concept of opportunity cost,giving at...

Question 18

Mark believes he should pay more than $49.95 for a motel room; this price is his internal reference price.

Accepted Answer

The answer of Mark believes he should pay more than...

Question 19

The first step in planning how to price a product is to develop pricing objectives.

Accepted Answer

Developing pricing objectives is the first step in determining how to price a product.

Question 20

When Top- Flite introduced its Strata golf balls with a new dimple design and more solid core for better flight with metal clubs,the price was three times that of regular balls.Pro shops still could not keep them in stock.What is the pricing strategy implemented by Top- Flite,and why did they choose this strategy?

Accepted Answer

The answer of When Top- Flite introduced its Strata golf...

Quiz 11: Pricing the Product