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Exam 11: Pricing Strategy

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Question 41

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While setting up an initial price structure for a product,a marketer should primarily:

A) discount environmental and external factors.
B) consider the recommended price to final consumers.
C) overlook the number of products sold by competitors.
D) de-emphasize profit potential.

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Question 42

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Which of the following is true of slotting allowances?

A) They are discounts offered for purchasing a large number of units.
B) They are often in the form of price reductions for performing promotional activities.
C) They tend to add marketing cost to a manufacturer and affect profits.
D) They are payments made by retailers to manufacturers to allow them to stock the manufacturer's products.

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Question 43

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Setting prices in a way that targeted customers perceive products to offer greater worth than competitive offerings is called _____.

Marking merchandise with an exceptionally high price and then claiming that the lower selling price actually used represents a legitimate price reduction is an example of _____.

Which of the following best explains why Delicia Co. ,a manufacturer of potato chips,prices each bag of potato chips at 99 cents rather than $1.00?

An advertisement for a popular fashion magazine reads: "Act now.Buy a 24-issue subscription and save $49 off the newsstand price." This is an example of a _____.

Fido's Burgers,a fast food joint,offers its customers a chicken burger meal with fries,coleslaw,and soda at a price lower than would be charged if the products were purchased separately.This example would best describe a(n) _____.

Konnectz Inc.plans to launch the latest version of its smartphone.As part of its market research and pricing strategy,it takes into account the economic buying potential of its target consumers and their locations.Which of the following factors that influence pricing decisions is Konnectz primarily concerned with in this scenario?

When Lucile visited a stationery store to buy tape,she noticed that each roll of tape was priced at $1.99.In fact,most of the prices at the store were set a few dollars or a few cents below a round number.This indicates that the manager of the store is using a(n) _____.

Which of the following businesses is most likely to use rate-of-return pricing?

The estimated production and sales for a coffee table book on celebrity gardening is 10,000 volumes at a total cost of $100,000.Calculate the sales price for each book if the publisher desires a before-tax return of 25 percent.

Which of the following is defined as an approach to pricing in which a seller charges a relatively high price on a new product initially in order to recover costs and make profits rapidly and then lowers the price at a later date to make sales to more price-sensitive buyers?

A bakery has to set the price of its sourdough bread.Which of the following is a psychological factor relevant to the pricing decision of the baker?

In odd-even pricing,_____.

Enchante Inc.is a high-end perfume manufacturer.It slashed the price of its brand of perfume "Entice" by 5 percent,which resulted in a 20 percent increase in sales.Estimate the price elasticity for Entice.

A company that manufactures LED lights is planning a long-term price change for its line of decorative table lamps.Which of the following is a psychological factor that the company is most likely to consider when making pricing decisions?

Pricing a product at the average price charged by an industry is called _____ and is popular for homogeneous products.

Zimmer Co. ,a food manufacturing company,wants to launch a new low-fat cereal called "Zimmer-less." The company decides to use certain demographic factors to determine the market potential of Zimmer-less and its expected sales at different price levels.Which of the following questions is the company most likely to consider?

One of the disadvantages associated with cost-oriented approaches to pricing is that:

Felicia Inc. ,a cosmetics company,wants to launch a new perfume called "Zing," with top notes of bergamot,orange,and cinnamon.When determining the price of the perfume and its market potential,the company takes into account the number of potential buyers and their economic strengths.Which of the following factors is Felicia using in determining the pricing of Zing?