Exam 12: Price Determination

The price of a product is influenced by:

A company in Singapore produces more ornamental fish than any other company in the world--nearly one-third of the world's pet guppies, tetras, goldfish, mollies, and other species. Small producers of tropical fish in other parts of the world would more than likely use a _____ pricing strategy.

Before Anthony went to the hardware store to buy a pair of fire-resistant gloves, his son asked him how much the gloves should cost. Anthony responded, "I think they should cost between $18 and $25." Between $18 and $25 is the:

K-Block cooking charts are poster-sized recipes designed to encourage children to cook. The recipe cards are sold in packages of four. Fixed costs for the company are $6,000, and variable costs per card are $1. A package of four cards is sold for $9.99. What is the marginal cost for making one more package of cards once the company has sold enough cards to break-even?

Which of the following pricing strategies can the manager of the Roast 'n Brew coffeehouse follow if she believes the store should have a status quo-oriented goal?

Price elasticity of demand refers to the:

Kelly usually pays $6.75 for a particular brand of cat litter that has an additive deodorizer, but if a competitive brand that uses a baking soda additive to reduce odor goes on sale, she will buy the brand that costs less. In which distinct consumer segment based on price perceptions does Kelly belong in this instance?

_____ is the income derived from the sale of the last unit.

Which of the following is NOT a commonly used type of pricing objective?

A product's base price is also called its _____ price.

What pricing method should a company that sells and installs in-ground swimming pools during the spring and summer use for patio and terrace repair it does during the off-season to keep its workers employed?

Six ounces of Charlee's Gourmet Beef Jerky sell for $13.50. The fixed costs for its manufacturer totals $16,000, and each 6-ounce package of beef jerky has a variable cost of $9.50. In order to break even, this firm needs to sell _____ 6-ounce packages.

The two primary manufacturers of microprocessors are Intel and AMD. To get a foothold in the market, AMD introduced its microprocessors at a price much lower than comparable Intel processors. AMD used a _____ pricing objective.

Which of the following companies will most likely set its price above the competitive level?

The exchange of a collection of salt and pepper shakers for a small end table is an example of barter.

Consumers may view products priced below the competition as undifferentiated commodities.

Which of the following sayings could most closely reflect the philosophy of an organization that uses a sales-oriented goal?

Aphrodite's manufactures and markets scents, which can be added to enhance plain bath oil or potpourri, used to cover unpleasant odors, or used in candle-making. Last year, sales were disappointing. The manufacturer decided to increase the price of each bottle of scent by approximately 25 percent. This increase in price resulted in a 20 percent increase in bottles sold. Aphrodite's apparently experienced:

A bottle of Glenfiddich whisky that costs $21 in Germany, costs $35 in Denmark, $43 in Sweden, and $55 in Norway. The Scandinavian countries clamped down on liquor consumption after almost endemic abuse during the 19thcentury when the average Swede consumed 46 liters a year. It is not unusual for people to travel eight hours from Stockholm to Germany to stock up on beer, wine, and other spirits. The Scandinavian countries are uninterested in the _____ when setting prices.

In price determination, given a particular selling price, the break-even point is where: