Exam 21: Setting the Right Price

Used Car Center Inc.allows salespeople to charge different customers different prices for essentially the same automobile depending on how good the customer is at negotiating the price.In this scenario,the company uses a:

Predatory pricing is the practice of charging a very high price for a product with the intent of increasing competition.

​A _____ is a price reduction offered to buyers buying in multiple units or above a specified dollar amount.

When Lofonift Inc.introduced its flagship product,an MP3 player,it captured the MP3 player market by offering its product at the lowest price in the market.This forced many of its competitors out of business.In this scenario,Lofonift Inc.most likely indulged in__________.

How do value-based pricing,unbundling,and bundling help marketers hold market share during a recession period?

Nellie Tompkins is the owner and operator of Tompkins' Salsa Inc. ,a salsa production unit.She makes and sells only three types of salsa--peach,pear,and pineapple.The joint costs of leasing her professional kitchen for manufacture,transport,insurance,and so on are allocated on an equal basis to the three types of salsas.Last year's sales figures and allocated joint costs are given below.Should Tompkins' Salsa Inc.stop selling its pear salsa? Why or why not?

Univ Airlines and Mirago Airlines are two competing airlines.They make an agreement to charge customers a certain price for airfreight.This leads to the filing of several lawsuits against them by other airlines.In this scenario,the two firms most likely indulged in__________.

​_____ are costs that are shared in the manufacturing and marketing of several products in a product line.

The marketing manager of pickacruise.com (a travel Web site targeted at consumers who want a luxury vacation)finds that the firm can increase its market share and become the industry leader if it slashes prices by 50 percent during the month of December.However,the Vice President of the finance department is committed to reporting a 25 percent Return on Investment (ROI)at all times,which cannot be achieved if the firm slashes its prices.This conflict illustrates:

​A _____ is the general level at which a company expects to sell a good or service.

_____ is a price tactic that charges freight costs from a given point,regardless of the city from which the goods are shipped.​

Acmell Lawnmowers Inc.sells its mowers to retailers at different prices depending on whether they are independent stores or members of a national chain.In this scenario,the company indulges in__________.

__________is a price tactic that charges freight costs from a given point,regardless of the city from which the goods are shipped.

A price skimming strategy is most often used for a new product when:

​When LofoniftInc.introduced its flagship product,an MP3 player,it captured the MP3 player market by offering its product at the lowest price in the market.This forced many of its competitors out of business.In this scenario,LofoniftInc.most likelyindulgedin _____.

A__________is a price reduction offered to buyers buying in multiple units or above a specified dollar amount.

​99-Center Inc.is a retail store where all its merchandise ispriced at 99 cents.This retailer uses a _____.

Consumer penalties are extra fees paid by retailers to consumers for violating the terms of a purchase agreement.

Which of the following is a pricing policy whereby a firm charges a high introductory price,often coupled with heavy promotion?

Which of the following acts prohibits a firm from selling to two or more different buyers,within a reasonably short time,commodities (not services)of like grade and quality at different prices where the result would be to substantially lessen competition?