Exam 14: Arriving at the Final Price

A) get rid of expired merchandise.
B) prevent retailers from purchasing competitors' products.
C) extend the peak seasonal selling season.
D) encourage buyers to stock inventory earlier than their normal demand would require.
E) temporarily spur primary demand during periods of soft sales, such as the beginning of a month, after which prices will return to normal when selective demand picks up.

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A) target pricing.
B) penetration pricing.
C) price lining.
D) odd-even pricing.
E) prestige pricing.

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Experience-curve pricing is based on the...

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A) pet food
B) furniture
C) crystal glass bowls
D) coal
E) cut flowers

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A) cost-oriented
B) profit-oriented
C) competition-oriented
D) demand-oriented
E) results-oriented

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A) consumers tend to be price-sensitive.
B) the company's product is easily and quickly duplicated.
C) a lower price will significantly lower fixed costs.
D) consumers perceive this product to be similar to others on the market.
E) the high initial price will not attract competitors.

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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) $2,000
B) $1,000
C) $900
D) $800
E) $100

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A) horizontal price fixing.
B) price discrimination.
C) resale price maintenance.
D) predatory pricing.
E) bait and switch pricing.

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A) warehouse inventory carrying and loading costs.
B) the cost of transportation of the products from seller to buyer.
C) changes in price due to tariffs the Federal Trade Commission imposes on the transport of goods from the United States.
D) changes in price due to fuel excise taxes on inefficient diesel trucks.
E) the need some firms have of recouping the costs of developing different versions of their products for different global markets.

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A) $263.50
B) $311.00
C) $387.50
D) $445.50
E) $775.00

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A) loss-leader pricing
B) standard markup pricing
C) at-, above-, or below-market pricing
D) price lining
E) penetration pricing

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A) skimming
B) price lining
C) BOGO
D) penetration
E) loss-leader

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A) skimming pricing
B) bundle pricing
C) yield management pricing
D) target return on investment pricing
E) standard markup pricing

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A) skimming pricing.
B) status pricing.
C) price lining.
D) value pricing.
E) prestige pricing.

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A) single-zone pricing.
B) multiple-zone pricing.
C) geographic pricing.
D) FOB origin pricing.
E) basing-point pricing.

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A) odd-even pricing.
B) dynamic pricing.
C) price lining.
D) bundle pricing.
E) product-line pricing.

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A) a method of selecting specific prices wholesalers and retailers are willing to pay based upon the elasticity of each given item.
B) a method of charging different prices to maximize revenue for a set amount of capacity at any given time.
C) the practice of simultaneously increasing product and service benefits while maintaining or decreasing price.
D) a method of estimating the price that ultimate consumers would be willing to pay for a product, then working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers.
E) a method of estimating the price that ultimate consumers would be willing to pay for a product, then determining how much wholesalers wish to charge its customers, deliberately adjusting the composition and features of the product to achieve the price to consumers.

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