Exam 14: Arriving at the Final Price

A) reductions in unit costs for a larger order.
B) cumulative cash payments or extra amounts of "free goods" awarded sellers in the channel of distribution for undertaking certain advertising or selling activities to promote a product.
C) discounts offered to sellers for first-time purchases of a new product as incentives for providing shelf space.
D) an accumulation of discounts for every additional rebuy in which the discount becomes incrementally higher.
E) discounts that apply to the accumulation of purchases of a product over a given time period,typically a year.

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A) $275.00
B) $178.75
C) $151.94
D) $144.34
E) $100.00

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A) predatory pricing
B) price discrimination
C) price fixing
D) bait and switch
E) conditional bargains

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A) Sherman Act.
B) Consumer Goods Pricing Act.
C) Robinson-Patman Act.
D) Federal Trade Commission Act.
E) Anti-Competitive Act.

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Odd-even pricing presumes that...

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A) seasonal
B) cash
C) trade
D) quantity
E) cumulative

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A) target pricing
B) cost-plus pricing
C) customary pricing
D) experience curve pricing
E) bundle pricing

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A) price discrimination.
B) price fixing.
C) predatory pricing.
D) tying arrangements.
E) exclusive dealing.

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A) get rid of dated merchandise.
B) prevent retailers from purchasing competitors' products.
C) prolong the peak seasonal selling season.
D) establish an immediate feeling of goodwill between the buyer and seller that hopefully will continue when prices return to normal.
E) entice dealers to purchase seasonal merchandise earlier in the selling season.

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A) line item pricing.
B) product-line pricing.
C) price lining.
D) customary pricing.
E) discretionary pricing.

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A) price reductions in unit costs for placing a larger order.
B) price reductions for placing long-term pre-scheduled orders.
C) price reductions to encourage retailers to stock inventory earlier than their normal demand would require.
D) BOGOs.
E) reductions in unit costs for taking merchandise that will soon be replaced by new and improved versions of the original product.

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A) demand;revenue.
B) production and marketing;profit.
C) demand;target sales.
D) cost;production and marketing expenses.
E) cost;consumer tastes.

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A) skimming pricing
B) target pricing
C) customary pricing
D) target return-on-sales pricing
E) standard markup pricing

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A) 5 percent of the suggested retail price that is available to the retailer to cover costs and provide a profit.
B) 5 percent of the suggested retail price that is available to the consumer as a rebate after purchase.
C) 5 percent of the suggested retail price that is available to the wholesaler or jobber to cover costs and provide a profit.
D) 5 percent of the suggested retail price that is available to the ultimate consumer if purchasing restrictions are met.
E) 5 percent of the suggested retail price that is the profit margin to the manufacturer.

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A) a pricing method where the price the seller charges is below the actual cost to make the product.
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% lower than nationally branded competitive products.

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A) a verified and substantial number of stores in the market area do not price the item at $100.
B) even one store in that retail chain does not price the item at $100.
C) a competitor is selling the same item for $75 on sale and the normal price is only $85.
D) there is not enough product on hand at that price to satisfy the needs of the store's regular customer traffic.
E) the markup on the original price is more than 200 percent.

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A) the service sector is
B) the market or competitors
C) the global economy is
D) suppliers are
E) the financial markets are

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A) a onetime discount to promote the product that must be used within a certain time frame.
B) the cash payments or an extra amount of "free goods" awarded sellers in the marketing channel for undertaking certain advertising or selling activities to promote the product.
C) the return of money to promote the product based on proof of purchase.
D) a short-term price reduction when consumer demand takes a significant and unexpected dip.
E) an incentive,such as trips,cruises,jewelry,etc. ,presented to brand-loyal customers.

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