Exam 13: Pricing Strategies

For which of the following products would a manufacturer be most likely to offer a seasonal discount?

The Vineyard is a wine store that carries wines priced at $8 per bottle, $25 per bottle, and $25 per bottle. Its owner theorizes that controlling the prices like he has makes it easier for customers who are not wine experts to make a purchase. The Vineyard uses:

Gavin purchased a barbecue grill cover. There were two prices on the box that contained the cover. A printed one said the price was $15.99. A handwritten one read $10.95. Since Gavin paid the $10.95 price, you can assume that the $15.99 price printed on the grill cover box was a _____ price.

An organization should use a market-skimming strategy for a new product if:

Both the Cedartown Grooming Gallery and the local veterinarian will wash, comb, and trim your dog. Even though their prices are about the same, the Cedartown Gallery is the better deal because the animals are kept in large kennels and given access to outside areas while they wait for their owners to pick them up. The vet's office has only a few small inside kennels. In comparison with the vet's office, Cedartown Grooming Gallery is using _____ pricing.

Which of the following situations is the most compelling case for market-penetration pricing?

_____ pricing may be adopted to offset the competitive disadvantages of FOB factory pricing.

A beef-processing company that has excess capacity and high fixed costs will most likely use _____ pricing.

If the manufacturer of prefabricated aluminum buildings quotes a retail price of $6,500 per structure with trade discounts of 15 percent and 40 percent for transporting and storing, the manufacturer would receive _____ in revenue.

There are many marinades and barbecue sauces currently on the market. To differentiate Stroh Ranch Marinade from all of the others on the market and to increase demand for the product, Jeanette Stroh includes a recipe booklet with each bottle of marinade she sells. This is an example of:

A silk-screener who attempts to shift the demand curve for his T-shirts to the right by means of product differentiation is engaged in _____ competition.

Unfair-practices acts written to regulate leader pricing:

Which of the following is an example of how a weight-loss clinic could use nonprice competition?

A homesick South African student received a telemarketing call last night that offered him unlimited international calls for a monthly fee of $39.95. This is an example of _____ pricing.

When Givenchy introduced Amarige de Givenchy, it set a relatively high price for the new cologne. This is an example of a _____ strategy.

Whenaselleroffersacashdiscountwithtermsof3/10,n/60,thismeans:

When a seller uses FOB factory pricing,:

Penetration pricing would be appropriate for a company introducing a new arthritis drug that was intended to capture at least 15 percent of the target market during its first 18 months of availability.

A trade discount is also known as a _____ discount.

A manufacturer of freestanding ovens offers trade discounts of 35 percent and 15 percent in return for transporting and storing the ovens. The manufacturer has set a retail price of $599 for each oven. For each oven sold, the manufacturer would receive _____ in revenue.