Exam 14: Arriving at the Final Price

The owner of a store that sells custom kitchen cabinets wishes to use a target return-on-sales pricing approach to establish a price for a typical section of cabinets. Assume that variable costs total $200 per unit, fixed cost is $44,000, and the storeowner desires a target profit of 20 percent return on sales at an annual volume of 400 cabinets. What price should be charged for a typical cabinet section?

Which of these is a cost-oriented pricing method?

When a firm divides its selling territory into geographic areas, it is referred to as

For which of these products is its manufacturer most likely to use basing-point pricing?

Manufacturers or even wholesalers make geographical adjustments to list or quoted prices to reflect

Penetration pricing is intended to appeal to which market?

The pricing strategy that is almost the exact opposite of skimming pricing is

Target pricing refers to

Manufacturers use seasonal discounts to

Figure 14-2 -Figure 14-2 above represents the four approaches to selecting an appropriate price level. Box D represents which approach?

The prices for all furniture sold at American Furniture Warehouse end in $9.99, such as $599.99, $899.99, etc. American Furniture Warehouse uses

A ________ approach often results in changing prices based on time, day, week, or season.

A skimming pricing policy is likely to be most effective when

In a controversial move, Amazon.com was caught manipulating its prices. Avid DVD buyers, buying in quantity for resale, found that the online retailer was offering different customers different prices for the same DVD, and complained vociferously. Company officials admitted that the company was trying to see how much it could charge for an item before buyers balked. Amazon was caught attempting

Noncumulative quantity discounts are

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as

A glassblowing studio makes fine pieces of art glass. It has decided on a retail list price of $2,000 for one of its vases. They sell only through wholesalers and retailers who receive 50/10 terms. How much will the studio receive from selling this vase?

When Amazon introduced the latest Kindle Fire tablet at $49.99 and the average price of competitive models was $323, Amazon was using a ________ pricing strategy.

Which of these is a competition-oriented approach to pricing?

What is experience-curve pricing and how does it relate to marketing strategies?