Exam 20: Setting the Right Price

_____ occurs when a firm is customer driven and seeks to understand the attributes customers want in the goods and services they buy and the value of those attributes to customers.Thus,the price of the product is set at a level that seems to the customer to be a good price compared with the prices of other options.

An awning manufacturer that is allowed to deduct 3 percent from its total bill if it pays by a specific date is receiving a promotional discount.

Costs that are shared in the manufacturing and marketing of several products in a product line are called:

Delayed-quotation pricing:

Micro Center Mall has published its After-Black Friday Sale flyer.It has an add for a Vaio laptop on special and below it,a one line ad for an upgraded model.This is an example of __________.

An Alabama-based catalog retailer sells fireplace equipment such as screens and andirons.Its customers in New England are charged one shipping rate,and customers west of the Rocky Mountains are charged a different rate.Customers in the midwestern states are charged yet another rate.What kind of geographic pricing is the catalog retailer using?

Which type of quantity discount is a deduction from the list price that applies to a single order?

When the salesperson from Affiliated Food,Inc. ,a grocery distributor,calls on a grocery store,she is authorized to offer a 15 percent discount from the list price in recognition of activities (such as unpacking items and stocking shelves)that retailers perform for the distributor.This 15 percent discount is a:

During a recent recession,many manufacturers determined that their suppliers were an excellent source of cost savings.Specific cost reduction strategies manufacturers have used with their suppliers include:

Procter & Gamble entered the electric toothbrush market with the Crest Spinbrush at a price considerably lower than lesser-known competitors.It used penetration to gain market share.

If the seller pays all or part of the actual freight charges and does not pass them on to the buyer,the seller is using _____ pricing.

Jones Soda Company and Big Sky Brands have introduced Jones Soda Carbonated Candy,a candy that delivers a blast of the most popular Jones Soda flavors along with an oddly enjoyable tongue-tingling sensation.Which pricing strategy would be appropriate if the company wants to convince price-sensitive consumers to try it and not buy some other brand?

Most companies do a very good job of doing research to create a price strategy.

Dancing Pigs Bar-B-Que Sauce is a product of the Bar-B-Q Shop located in Memphis,Tennessee.It's also sold online for $88 a case,including shipping and handling.The Bar-B-Q shop covers the cost of shipping and uses _____ pricing policy.

Offering a free telescopic lens boxed with a compatible digital camera is bundling both for the same low price.

L.L.Bean charges all customers the same flat freight rate.It uses:

A markdown allowance is a payment to a dealer for promoting the manufacturer's product.

What is product line pricing? What three relationships among products in the line must managers be aware of before setting prices? For each relationship,give an example of a product that fits the situation.

Every week,Keller's Grocery runs a weekly ad in the newspaper touting its sale prices on a number of products.For example,this week the store is selling cherries for $1.50/pound and boneless chicken breasts for 99 cents/pound.Keller's sells these products at a below-market price to lure customers into the store in hope that while they are in the store to buy chicken and cherries,they will also buy other grocery items that have a much higher markup.The store is using:

When a channel intermediary is compensated for the ordinary services and tasks performed within the channel of distribution,the compensation usually comes in the form of a discount from base price.This discount is called a: