Quiz 11: Pricing

Promotion is one of the most important strategic decisions a firm faces because it reflects the value the product delivers to consumers as well as the value it captures for the firm.

A profit maximization strategy is used during the growth and maturity stages of the product life cycle.

Volume maximization is the same thing as penetration pricing.

The change in total revenue that results from selling one additional product unit is referred to as price sensitivity.

Customers are more price sensitive the higher the product's price is relative to the customers' price expectation.

Price elasticity of demand is a measure of price sensitivity.

A recreational watersports dealer reduced the price of its new jet skis by $1,000 in hopes of generating more sales. However, the lower price only resulted in a few more sales of the jet skis. This represents an elastic demand situation.

Prices are generally more elastic in the early stages of the product life cycle and increasingly inelastic in the later stages of the product life cycle.

Rent on an office building would be considered a fixed cost, while sales commissions would be considered a variable cost.

Once a firm has established its break-even point for a product, it has a starting point for estimating how much revenue it must generate to earn a profit.

Break-even analysis is an accurate measure of price sensitivity.

While shopping, Lucie sees a pair of jeans on sale for $29.99. She is excited because she has purchased this particular brand of jeans several times in the past for $40.00. In this instance, $40.00 is Lucie's fixed cost.

Underpricing is a pricing strategy whereby companies charge an amount just below cost in order to generate sales in the introductory stage of a product's life cycle.

Unbundling provides value for customers who are focused on a specific price point rather than the complete product offering.

An escalator clause ensures that the customer does not incur financial hardship as a result of increases to the cost of a product.

Shrinkflation is when manufacturers "shrink" or reduce the price of their products during times of inflation.

Cost-plus pricing is not a very effective strategy for maximizing profits.

An odd pricing tactic prices items in odd dollar amounts, such as $4.95, instead of in even amounts, like $4.88.

Loss-leader pricing involves selling a product at a price that causes the firm a financial loss.

Dynamic pricing is a pricing strategy that involves pricing a product higher than competitors to signal that it is of higher quality.

The gray market form of buying and selling often occurs when the price of an item is significantly higher in one country than another.

Tariffs may raise the price that foreign customers must pay for goods produced in the United States, negatively impacting a U.S. firm's ability to be price competitive in those markets.

A local diner offers a lunch special during the week for $5.99. On Wednesdays, senior citizens can get the same lunch special for $4.99. This is a form of predatory pricing.

Because price discrimination could be considered an attempt to create a monopoly, it is illegal under U.S. law.

The 1936 law that requires sellers to charge everyone the same price for a product is the Robinson-Patman Act.

The Robinson-Patman Act is also called the Advertising Act. A)worth. B)renumeration. C)price. D)fee. E)value.

One of the most important strategic decisions a firm faces is ________ because it reflects the value the product delivers to consumers as well as the value it captures for the firm. A)production management B)profit management C)advertising D)promotion E)pricing

Billy set up a lawn-mowing business in his neighborhood. He currently has 7 customers that want their lawns mowed each week, for which he charges $25.00 each. Billy spends $10.00 a week in gas and another $17.00 in yard waste bags and stickers. What is Billy's weekly revenue? A)$88.00 B)$148.00 C)$175.00 D)$105.00 E)$158.00

Billy set up a lawn-mowing business in his neighborhood. He currently has 7 customers that want their lawns mowed each week for which he charges them $25.00 each. Billy spends $10.00 a week in gas and another $17.00 in yard waste bags and stickers. What is Billy's weekly profit? A)$148.00 B)$158.00 C)$175.00 D)$88.00 E)$105.00

The first step in the price-setting process is to A)analyze the competitive price environment. B)compare alternatives. C)determine the costs. D)define the pricing objectives. E)evaluate demand.

When Superior Cellular released its first smartphone, it charged customers $999. Shortly thereafter, it reduced the price to $599 for the exact same device. Superior's decision to set a relatively high price for a period of time after the product launched and then decrease the price to a level that would be more sustainable over time reflects which pricing strategy? A)target pricing B)survival pricing C)profit maximization D)volume maximization E)underpricing

Compare the following statements and select the one that is accurate regarding a profit maximization strategy. A)For a profit maximization strategy to work over the long term, the firm must have a significant cost or resource advantage over competitors. B)Profit maximization should not be used as a permanent pricing objective, but is effective in allowing a firm to endure a difficult time. C)A profit maximization strategy sets prices low to encourage a greater volume of purchases and lower the level of involvement for the consumer. D)A profit maximization strategy is best used when a product is in the growth and maturity stage of the product life cycle. E)Profit maximization assumes that customers value a product's differentiating attributes and are willing to pay a higher price to take advantage of those attributes.

Volume maximization is also referred to as A)target pricing. B)price skimming. C)profit maximization. D)penetration pricing. E)survival pricing.

What is marginal revenue? A)the total change in revenue that results from a small change in product price B)a percentage change in price that results from a change in quantity demanded C)the change in total revenue that results from producing one additional unit D)the change in total revenue that results from selling one additional unit of a product E)the total change in revenue that results from a large change in product price

The degree to which the price of a product affects consumers' purchasing behavior is referred to as A)dynamic pricing. B)price sensitivity. C)marginal pricing. D)price elasticity. E)price relevance.

Consumers will be more price sensitive when A)the cost of not getting the expected benefits of a purchase is high. B)some or all of the purchase price is paid by others. C)the price they have to pay is more than they anticipated. D)they perceive the price as a gain rather than a forgone loss. E)a product's price is within the range that they perceive as fair or reasonable.

One of the most important concepts in marketing is the price elasticity of demand, which is the A)percentage change in quantity demanded in response to a percentage change in price. B)point at which the costs of producing a product equal the revenue made from selling the product. C)price that consumers consider reasonable and fair for a product. D)percentage a product is marked up in response to consumer demand. E)difference between the actual price and the highest price the customer would be willing to pay for the product.

A measure of price sensitivity that gives the percentage change in quantity demanded in response to a percentage change in price is known as A)marginal revenue. B)price elasticity of demand. C)profit maximization. D)break-even analysis. E)price elasticity of supply.

In June, the appliance store priced its French-door refrigerators at $1,199.00 and sold 50 units. In September they reduced the price to $1,099.00 and sold 53 units. Which statement is accurate regarding this situation? A)Demand is elastic and total revenue fell from June to September. B)Demand is inelastic and total revenue fell from June to September. C)Demand is elastic and total revenue rose from June to September. D)Demand is inelastic and total revenue rose from June to September. E)Demand is neither elastic nor inelastic, but revenue rose from June to September.

For the first quarter of the year, the price of the company's most popular e-reader was $129.00. The company sold 750,000 units at this price. For the second quarter, the company decided to reduce the price of the e-reader to $109.00. At this price point, the company sold 1.5 million units indicating that demand for the product is A)stable. B)elastic. C)marginal. D)inelastic. E)unstable.

In the price-setting process, the next step after demand has been evaluated is to A)analyze the competitive price environment. B)define the pricing objectives. C)choose a price. D)determine the costs. E)evaluate the alternatives.

Which cost would be considered a fixed cost? A)raw material B)advertising C)sales commissions D)delivery costs E)production supplies

Variable costs are defined as costs that A)vary depending on the advertising budget for the product. B)vary depending on the type of material used in production. C)change only during economic downturns. D)vary depending on the number of units produced or sold. E)remain constant even though the product offering varies.

Which type of cost is a variable cost? A)rent B)insurance C)delivery cost D)advertising cost E)salaries

What is calculated in a break-even analysis? A)the percentage change in quantity demanded in response to a percentage change in price B)how many units of product must be sold to cover fixed costs C)the difference between marginal revenue and marginal cost D)the sales volume needed to achieve a profit of zero E)the point at which fixed costs and variable costs are equal

Armando is the owner of a full-service pet grooming business. For the month of October he paid $2,000 in rent, $700 in utilities, $2,950 in salaries, and $50 on advertising. A full service pet grooming costs $25.00. Unit variable costs per grooming are $5.00. How many full-service pet groomings does Armando need to sell to break-even each month? A)166 B)200 C)250 D)287 E)191

Which statement regarding break-even analysis is true? A)Break-even analysis does not measure the cost of sales. B)Break-even analysis does not measure price sensitivity. C)Break-even analysis is an accurate measure of fixed costs. D)Break-even analysis reflects how demand may be affected at different price levels. E)Break-even analysis is an accurate measure of variable costs.

Since consumers have the tendency to compare prices on almost everything they buy, marketers setting prices should attempt to capitalize on this tendency by determining the price consumers will consider fair and reasonable for a product. This is known as the A)break-even point. B)dynamic price. C)reference price. D)benchmark price. E)reasonable price.

Kaylee went to the specialty grocery store by her office after work. When looking at the offerings at the meat counter, she was surprised to see ribeye steaks selling for $12.49/lb. At her normal grocery store, she can get the same quality beef for $9.99/lb., a price Kaylee feels is reasonable. $9.99/lb. for ribeye steak is Kaylee's A)reasonable price. B)break-even point. C)benchmark price. D)reference price. E)dynamic price.

The best source of information for marketers regarding how high they can price a product before customers stop considering the product a good value comes from A)sales forecasts. B)the advertising staff. C)salespeople. D)historical pricing data. E)customer service personnel.

According to your text, one of the most common mistakes in modern pricing is A)pricing items based on consumers' reference prices. B)failing to correctly calculate the break-even point. C)setting the price too high on an introductory product. D)covering fixed costs while ignoring variable costs. E)charging someone less than they are willing to pay.

Charging someone less than they are willing to pay is a practice referred to as A)price skimming. B)underpricing. C)minimal pricing. D)dumping. E)survival pricing.

Which statement regarding pricing is true? A)Marketers should keep prices low during the introductory stage of the product life cycle. B)A price-skimming strategy is often used during the growth and maturity stages of the product life cycle. C)Choosing a price is a one-time decision that is made for each individual product. D)Pricing strategies should be reevaluated throughout the product life cycle. E)Initiating price increases is one of the least challenging aspects of pricing.

The three most common and effective strategies marketers can use for raising prices are unbundling, escalator clauses, and A)dumping. B)reference pricing. C)prestige pricing. D)odd pricing. E)shrinkflation.

The price strategy of unbundling involves A)adding a certain amount to the cost of each item in a product set. B)placing two or more products together in a package and selling them at a single price. C)separating out the individual goods that make up a product and pricing each one individually. D)pricing products a few cents below the next dollar amount. E)constantly updating prices to reflect changes in supply or demand.

Cabinet Renewal has a 3-step program for refinishing cabinets. Each step features a different product. Cabinet Renewal sells the products as a set containing one bottle of each of the 3-step products. If Cabinet Renewal decided to sell each product individually rather than as a set, it would be an example of which pricing strategy? A)underpricing B)minimal pricing C)dynamic pricing D)unbundling E)dumping

A section in a contract that ensures that providers of goods and services do not encounter unreasonable financial hardship as a result of uncontrollable increases in the costs of or decreases in the availability of something required to deliver products to customers is referred to as a(n)________ clause. A)hardship B)control C)protective D)materials E)escalator

Taste of the Tropics is a manufacturer of fruit juice products. It recently reduced the amount of its premium juice line from 64-ounce containers to 52-ounce containers but kept the price the same. This is an example of A)unbundling. B)shrinkflation. C)dumping. D)yield management. E)survival pricing.

One of the most commonly used pricing tactics, markup pricing, is also referred to as ________ pricing. A)dynamic B)standard C)profit margin D)profit-plus E)cost-plus

As a pricing tactic, markup pricing is A)a good measure of price sensitivity. B)the most effective pricing tactic overall. C)good at capturing the value consumers place on products. D)not very effective at maximizing profits. E)difficult to implement.

The amount a product sells for above the total cost of the product itself is called A)marginal cost. B)the break-even point. C)profit margin. D)the price elasticity of demand. E)marginal revenue.

A pricing tactic in which a firm prices products a few cents below the next dollar amount is called A)even pricing. B)deal pricing. C)perceived pricing. D)bargain pricing. E)odd pricing.

Drendel's shoe store just received a shipment of women's dress boots. The manufacturer's suggested retail price for the boots is $150.00, but Drendel's decides to price the boots at $149.95. What pricing tactic is Drendel's most likely using? A)prestige pricing B)odd pricing C)dynamic pricing D)shrinkflation E)yield pricing

Prestige pricing involves A)pricing generic label goods at the same price as designer goods. B)adding a certain amount to the cost of each item in a product set. C)pricing a product higher than competitors to signal that it is of higher quality. D)constantly updating prices to reflect changes in supply or demand. E)separating out the individual goods that make up a product and pricing each one individually.

Prices that end in ________ are often easier for customers to process and retrieve from memory. A)0 B)5 C)7 D)9

If luxury brands such as Hermès clothing, Maserati automobiles, and Gucci purses wanted to promote an image of superior quality and exclusivity to customers, they would most likely use which pricing tactic? A)luxury pricing B)dynamic pricing C)odd pricing D)cost-plus pricing E)prestige pricing

The Sandy Beach resort, a family resort located in Florida, promotes the months of September and October as its vacation value months. During this time, it offers reduced rates on rooms. It does this, in part, because most families don't vacation during this time due to their children being in school. The pricing tactic The Sandy Beach Resort is using to encourage vacationing during these months is most likely A)price bundling. B)prestige pricing. C)unbundling. D)seasonal discounts. E)odd pricing.

If a resort wanted to promote visitors to come during its off-peak times, it would most likely choose which pricing tactic? A)seasonal discounts B)prestige pricing C)odd pricing D)price bundling E)price skimming

Auto Brite is a manufacturer of car care products. It sells its deluxe care pack for $19.99. The package includes detergent, car wax, tire cleaner and a polishing cloth. This is an example of A)yield management. B)price skimming. C)survival pricing. D)price bundling. E)underpricing.

A strategy in which two or more products are packaged together and sold at a single price is called price A)skimming. B)packaging. C)pushing. D)grouping. E)bundling.

Your text notes that technology has helped to shift the balance of power from companies to customers. Which statement exemplifies this concept? A)The Internet allows companies to advertise on more than one platform. B)Companies can use social networking sites to help them better target their audiences. C)The Internet has made it possible for customers to comparison shop for products. D)Data gathered at the point-of-sale can be used by companies to target customers for new products. E)Automated production systems lead to more efficient and cost-effective manufacturing processes.

Recent research indicates that approximately ________ of consumers search for and purchase a low-priced product using an in-store shopping app or online search engine. A)5 percent B)20 percent C)40 percent D)75 percent E)90 percent

What technological advancement created for mobile devices has unleashed a new era of pricing transparency for consumers? A)wireless apps B)text messaging C)mobile banking D)SIM cards E)GPS systems

A pricing strategy that involves constantly updating prices to reflect changes in supply, demand, or market conditions is called A)flexible pricing. B)dynamic pricing. C)demand pricing. D)market pricing. E)penetration pricing.

Mitch, a marketer for a major retailer, uses the Internet to aggressively review the prices of products sold by his competitors. Accordingly, he constantly updates his prices based on his findings and what changes he sees in consumer demand. What type of pricing strategy is Mitch most likely using? A)market pricing B)demand pricing C)dynamic pricing D)penetration pricing E)flexible pricing

For an airline, the price of economy-class seats on any given flight may fluctuate over time. For example, the airline may try to fill economy-class seats by lowering the price as the day of the flight draws closer, or try to fill business-class seats first by raising prices on economy tickets. This is an example of A)price skimming. B)odd pricing. C)dynamic pricing. D)market pricing. E)seasonal discounts.

Yield management is a strategy for maximizing a firm's A)supply. B)revenue. C)demand. D)production. E)operating costs.

Which of the following is not true regarding global pricing? A)Firms do not encounter any unique challenges when pricing products globally. B)Historically, companies have set prices for products sold internationally higher than the same products sold domestically. C)Technological advancements have made global pricing more transparent. D)Pricing is a critical component of a successful global marketing strategy. E)Economic conditions over the past decade have impacted global pricing for products.

The illegal buying and selling of products outside of sanctioned channels is referred to as the A)black market. B)gray market. C)red market. D)white market. E)blue market.

The sale of branded products through legal but unauthorized distribution channels is referred to as the A)gray market. B)blue market. C)white market. D)black market. E)red market.

A couple living in the United States travels to China and buys huge amounts of designer watches for a much lower price than could be purchased at home. They import the watches back into the States where they sell them for less than the normal market price. The watches are considered to be A)smuggled goods. B)contraband. C)gray market goods. D)black market goods. E)illegal imports.

Which statement regarding the gray market is true? A)The interconnected nature of world economies has made it easier for firms to track gray market exchanges. B)The gray market is a benefit for manufacturers, but not for consumers. C)Gray market exchanges occur when the price of an item is the same in both countries where the exchange occurs. D)Gray market goods allow consumers to purchase items for less than they could normally. E)The gray market involves the illegal buying and selling of goods.

Taxes on imports and exports between countries are called A)market equalizers. B)embargoes. C)tariffs. D)allowances. E)sanctions.

Import/export transactions between the United States, Mexico, and Canada have been made easier by the A)implementation of embargoes. B)gray market. C)implementation of tariffs. D)black market. E)absence of tariffs.

Dumping occurs when A)a product is exported to a foreign country because demand for the product domestically has waned. B)a company sells its exports to another country at a lower price than it sells the same product in its domestic market. C)prices for products are lowered to the point at which revenue just covers costs. D)a company charges less for a product than what customers are willing to pay. E)an abundance of inventory is sold off to discount retailers to recoup costs.

The strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market is referred to as A)survival pricing. B)dumping. C)mass exporting. D)shrinkflation. E)bundling.

As noted in your text, producers in which country were accused of dumping by selling silk at unreasonably low prices? A)China B)India C)Brazil D)Japan E)Morocco

According to your text, which element of the marketing mix is one of the most watched and regulated activities? A)profit B)promotion C)product D)place E)price

Located on a college campus, Howie's Hot Dog Hut charges $3.99 for its deluxe dog basket. However, students receive a 10percent discount off the price for showing their student ID. This is an example of A)predatory pricing. B)price fixing. C)price inflation. D)price discrimination. E)deceptive pricing.

The practice of charging different customers different prices for the same product is called A)predatory pricing. B)price discrimination. C)price inflation. D)deceptive pricing. E)price fixing.

The three largest manufacturers of telecommunications wire conspired together so that all three firms would charge the same price for coaxial cables. This is an example of A)deceptive pricing. B)price discrimination. C)price fixing. D)predatory pricing. E)price inflation.

A major pharmacy retail chain opened a brand new location down the street from Peterson's drug store and has drastically reduced prices on many of the same products that Peterson's sells, forcing the store to go out of business. After Peterson's closed its store, the pharmacy retail chain began raising its prices to more normal levels. This is an example of A)price fixing. B)price inflation. C)price discrimination. D)deceptive pricing. E)predatory pricing.

Because it could be considered an attempt to create a monopoly, which pricing strategy is illegal under U.S. law but is difficult to prove? A)price fixing B)price inflation C)price discrimination D)deceptive pricing E)predatory pricing

Deceptive pricing involves A)two or more companies colluding to set a product's price. B)selling exports to another country at an unreasonably low price. C)intentionally misleading customers with price promotions. D)charging different customers different prices for the same product. E)adding hidden taxes to products that are imported or exported.

A retailer inflated the price of its leather jackets so that when it put the jackets on sale, it appeared to customers that they were getting a better deal than they really were. This is an example of what pricing strategy? A)price fixing B)deceptive pricing C)predatory pricing D)price discrimination E)price inflation

All of the following are legal under the Robinson-Patman Act except A)charging different prices if it is part of a quantity discount program. B)promising to match competitor's prices if the consumer produces proof of the lower price. C)charging a different price for a product that has changed in quality. D)charging different prices as a result of a going-out-of-business sale. E)large companies leveraging their buying power to purchase goods at lower prices than smaller companies.

The Robinson-Patman Act was passed in 1936 and A)made the practice of price fixing illegal. B)established maximum rates for tariffs on imports and exports. C)established the Federal Trade Commission. D)requires sellers to charge everyone the same price for a product. E)was designed to protect consumers from false advertising practices.

Which piece of legislation established the Federal Trade Commission, giving it the authority to enforce laws aimed at prohibiting unfair methods of competition? A)the Federal Trade Commission Act B)the Clayton Antitrust Act C)the Wheeler-Lea Act D)the Sherman Antitrust Act E)the Robinson-Patman Act

Which piece of legislation is also called the Advertising Act? A)the Clayton Antitrust Act B)the Wheeler-Lea Act C)the Federal Trade Commission Act D)the Robinson-Patman Act E)the Anti-Price Discrimination Act

________ is/are calculated by multiplying units sold by price, whereas ________ is calculated by subtracting costs from revenue. A)Costs; profit B)Revenue; profit C)Profit; revenue D)Profit; costs E)Revenue; break-even

You are shopping at a luxury boutique shop, and notice all the prices of the products are listed as $200, $350, etc. This is an example of ________ pricing. A)high end B)luxury C)whole dollar D)odd E)even

When booking a flight for your upcoming trip, you notice the airline company now charges extra fees for baggage, assigned seats, and early boarding when these items used to be included in the price. This pricing strategy is referred to as A)product separation. B)dumping. C)shrinkflation. D)unbundling. E)escalating.

Your Internet provider offers the lowest price in town for Internet service if you sign a two-year contract; however, the low price offer only lasts the first year. Which pricing strategy is the Internet company using to attract customers? A)revenue maximization B)volume maximization C)product maximization D)profit maximization E)business maximization

Within the price setting process, what step comes after the price objectives have been defined? A)picking a price B)evaluate demand C)determine the costs D)monitor the price E)analyze price competitors

The protectionist strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market is called A)unbundling. B)escalation. C)dumping. D)loss leader.

A(n)_________ price is any price that a consumer uses as a basis for comparison in judging another price. A)value B)perceived C)differential D)efficiency E)reference

The objective of strategic pricing is ________.

The first step in setting price is to clearly define the pricing ________.

________ maximization is a pricing strategy that involves setting a relatively high price for a period of time after the product launches.

Useful as a temporary means of staying in business, ________ pricing is the process of lowering prices to the point at which revenue just covers costs, allowing the business to endure a difficult time.

Marketers have to project the specific demand for their product at various price points knowing that the price of a product affects consumers' purchasing behavior. This is the idea behind the concept of price ________.

The percentage change in quantity demanded in response to a percentage change in price is referred to as price ________ of demand.

The Times Press charges $1.00 for its newspaper and has 150,000 subscribers. The publishers decided to reduce the price of the paper to $0.75 in hopes of attracting new subscribers. However, the price reduction resulted in only 500 new subscribers. This represents demand that is ________. (elastic/inelastic)

Prices are generally more ________ in the early stages of the product life cycle. (elastic/inelastic)

United Airlines offered a summer sale in which it reduced its domestic flights by a small percentage. Because of this decrease in price, there was a significant increase in quantity demanded. This is an example of ________ demand. (elastic/inelastic)

Costs that remain constant and do not vary based on the number of units produced or sold are called ________ costs.

Manny is preparing a monthly report for his supervisor regarding plant operations. While Manny is happy to report that production increased by 20 percent this month, he needs to let his supervisor know that material charges, delivery costs and utilities to run the plant also increased significantly. These represent the plant's ________ costs.

If the costs of producing a product equal the revenue made from selling the product, a firm has achieved the ________ point.

While break-even analysis analyzes the costs of sales, it fails to take into consideration consumers' sensitivity to ________.

In a market structure in which there are a large number of buyers and sellers, the pricing impact of any single firm will be fairly ________. (large/small)

Simply is a manufacturer of fresh, all-natural pet food. The company conducted a survey and found that customers considered $23.00 for its 3-lb. bag of complete meals to be reasonable since the product is made in the United States from fresh, all-natural ingredients. For Simply, $23.00 represents its targeted consumers' ________ price.

_________ prices are the prices that consumers consider reasonable and fair for a product.

One of the most common mistakes in modern pricing is charging someone less than they are willing to pay, which is referred to as ________.

A(n)________ clause in a logistics contract can take the form of a fuel surcharge that allows trucking companies to adjust prices based on the current price of fuel.

A computer manufacturer that used to sell its computer, monitor, and keyboard for one packaged price now sells each item separately. This is an example of ________.

A section in a contract that ensures that providers of goods and services do not encounter unreasonable financial hardship as a result of uncontrollable increases in the costs of or decreases in the availability of something required to deliver products to customers is called a(n)________ clause.

The process of items shrinking in size or quantity while their prices remain the same or increase is called ________.

Cost ________ pricing is one of the most commonly used pricing tactics, largely because it is easy, but it is not very effective at maximizing profits.

The amount a product sells for above the total cost of the product itself is its ________ ________.

The average price of a 40-inch flat screen TV purchased at a local electronics store is $199.99. This is most likely a(n)________ pricing tactic.

Firms that want to promote an image of superior quality and exclusivity to customers would most likely pursue a _________ pricing strategy.

Eduardo owns a sporting goods store in the Northeast. During the winter months, he prices his baseball and camping gear at reduced prices in hopes of selling the equipment year-round. This is an example of a(n)________ discount.

Packaging two or more products together and charging a single price is referred to as price ________.

Through the use of the Internet and mobile price comparison applications, _________ has helped to shift the balance of power from companies to customers.

Constantly updating prices to reflect changes in supply, demand, or market conditions is a pricing strategy called ________ pricing.

Priceline.com is a type of "name-your-own-price" ________ site where a consumer submits a bid at the price he or she is willing to pay for a product or service.

Individuals or groups that buy new or used products for a lower price in a foreign country, import them legally back into the domestic market, and sell them for less than the normal market price are participating in the ________ market.

The international pricing strategy of any U.S. firm must take into account the taxes on imports and exports that foreign countries might place on its goods, otherwise known as ________.

________ is a strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market.

________ is one of the most watched and regulated marketing activities because it directly impacts the financial viability of both organizations and individuals.

The practice of charging different customers different prices for the same product is called price ________.

If two or more companies agree to maintain a certain price on a product, they are engaging in a deceptive and illegal practice called price ________.

The practice of first setting prices low with the intention of pushing competitors out of the market or keeping new competitors from entering the market, and then raising prices to normal levels is referred to as ________ pricing.

A firm that knowingly quotes a higher original price on a product to make the discount it offers on the product seem more substantial is engaged in ________ pricing.

To combat price discrimination that injures competition, the __________ was made into law in 1936 with the goal of requiring sellers to charge everyone the same price.

The Wheeler-Lea Act of 1938 is also called the ________ Act.

You own a gas station and are thinking about raising prices because your cost of the gasoline has increased. You are worried that if you raise the price, the quantity of gasoline purchased by your customers will decrease, thereby lowering your total revenues. Analyze this situation in terms of price elasticity.

You are starting a business and as part of your business plan you need to develop a break-even analysis. Your fixed costs (overhead)associated with your store are $1,000,000 annually, and your selling price per item is $2,500. If you have a labor cost of $500 per unit, marketing costs of $250 per unit, and other variable costs of $500 per unit, what is your break-even point of sales?

The fourth step in the price-setting process is to analyze the competitive price environment. Explain the various strategies involved in setting prices to compete against other firms.

What is a reference price and what role does a company's sales force play in identifying reference prices.

Describe the three most common and effective strategies for raising prices.

What are the various pricing tactics that a business can use?

Why is price discrimination acceptable in pricing?

You just saw an advertisement in the newspaper for a very inexpensive big screen television on sale at a local department store. The ad implies the TV has all the features that a customer would want in that type of TV. You get to the department store and the television that is on display that matches the price does not look like the TV in the ad, nor does it have the functions that you would expect in a big screen TV. The salesperson tells you that you should look at the model staged next to the model on sale, which has all the features you are looking for, but is $200 more. What do you think the pricing strategy is that this company used in this instance?