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Exam 11: Pricing Strategy

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Question 1

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Jenna sells ice creams at the beach each summer. Each bar of ice cream costs her 20¢. She adds on an additional 20¢ to each bar to pay for electricity for the freezer, napkins, and her time, finally selling her ice creams at 40¢ a bar. In this scenario, Jena uses _____ pricing.

A) bundle
B) rate-of-return
C) odd-even
D) markup

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Question 2

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Markup pricing:

A) is commonly used in retailing.
B) is commonly used by manufacturers.
C) is most often used to describe the pricing of jobs that are nonroutine and difficult to "cost" in advance.
D) is a psychological pricing strategy.

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Question 3

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Exclusivez, a leading jeweler, offers a pair of diamond earrings for only $2000, a price that is 40 percent lower than that of its competitors. Exclusivez aims to use this strategy to drive its competitors out of business and become the market leader in diamond jewelry. This is an example of _____.

Buyers who want to avoid the hassle of waiting in line to order a pizza at Grundel's Pizza Joint can buy their pizzas sooner at a higher cost. Such costs are examples of _____ costs.

Felicia Inc., a cosmetic 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?

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) _____.

Which of the following is a demographic factor that influences the pricing decision of a product?

Which of the following is true of a high/low pricing strategy?

_____ is most often used to describe the pricing of jobs that are nonroutine and difficult to "cost" in advance.

For which of the following products is a producer most likely to use cost-plus pricing?

Which of the following is a demographic factor that should be considered in the initial selection of a target market?

Which of the following is true of pricing objectives?

Which of the following is an example of a demographic factor that influences the pricing decision of a product?

Which of the following is a type of psychological pricing strategy?

Which of the following factors influencing pricing decisions pertains to the expected consumption rates, the location, and the position of potential buyers?

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?

Which of the following is true of slotting allowances?

Which of the following provides valuable information about what a target market thinks about a product and what it is worth to them?

Which of the following product characteristics affecting pricing typically involves discounting products as they approach being no longer fit for sale?

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 _____.