Exam 13: Pricing Products and Services

The marketplace sets the price for soybeans,so farmers who are trying to sell their soybean crops don't have to create a pricing strategy.The soybeans are sold in a(n)_____ market.

Ampro-Mag is a small company that makes materials for safely controlling hazardous spills of all kinds.It sells these items as a neutralizing kit priced at $120.The costs of the materials that go into each kit are $45.It costs $5 in labour to assemble a kit.The company has monthly expenses of $1,000 for rent and insurance,$200 for heat and electricity,$500 for advertising in trade journals,and $3,500 for the monthly salary of its owner.What is Ampro-Mag's monthly break-even point in terms of number of neutralizing kits sold?

When Radiohead launched their 'In Rainbows' album online,they allowed consumers to download it for free or download it for a donation the consumer set themselves.This type of pricing is referred to as:

Target profit pricing is:

Chico's sells women's sportswear.A simple tank top with the Chico's label costs $48.If you know you simply want a tank top,you can buy a tank top for $5 at a Family Dollar Store,but it won't have the Chico's label.What kind of demand-oriented approach to pricing is being used by this manufacturer?

At a price of $3 each,SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle.If the price per issue is increased to $3.25 each,only 1 million copies will be sold.For the information provided,the price elasticity of demand for SHAPE magazine in this price range can be described as:

A new-car dealer can offer a substantial reduction in the list price of a new Ford pickup truck by offering you a _____ of $3,000 for your 1988 Camaro.

Which of the following is NOT a demand-oriented approach to pricing?

Leupold & Stevens,Inc.,a North American manufacturer of rifle scopes,uses a variety of pricing strategies for its rifle scopes.For some,the company uses above-,at-,or below-market pricing to reach as many customers as possible.The company is more concerned about making a profit for the complete line of its scopes - rather than making a profit on just one item in its product.Leupold & Stevens uses:

Washburn Guitars broke their guitars into four distinct market segments.Each segment would be priced accordingly.Their batch-custom products instruments were intended to appeal to

Which of the following types of competitive markets is LEAST likely to need pricing objectives?

In which type of industry would a marketing director be most likely to say,"The purpose of our advertising is to differentiate our firm's products from our competitors' products"?

Geographic adjustments are made by manufacturers or wholesalers to:

Pharmacist and new father Kenneth Kramm wanted his son to take his medicine,but it was a battle.As a result Kramm developed FLAVORx,a liquid medicine-flavouring system that can mask the taste or smell of medicine.FLAVORx tastes of strawberry or grape and has no effect on the medicinal value of the drug to which it is added.It is the first product of its kind.Because Flavorx is in the _____ stage of the product life cycle,the price of the medicine-flavouring system should be _____ than the price that would usually be charged.

Wilkinson Sword exchanged some of its knives for advertising used to promote its razor blades.This practice is referred to as:

Which of the following is a special kind of price?

At a price of $3 each,SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle.If the price is increased to $3.25 each,only 1 million copies will be sold.Fixed costs are $1 million and unit variable costs are $0.50 per magazine.For the information provided here,what is SHAPE magazine's total revenue obtained at the higher price?

Ships Ahoy is a small company that makes model sailboat kits priced at $120.The costs of the materials that go into each kit are $45.It costs $5 in labour to assemble a kit.The company has monthly expenses of $1,000 for rent and insurance,$200 for heat and electricity,$500 for advertising,and $3,500 for the monthly salary of its owner.Ships Ahoy's unit variable cost for its kits is:

The owner of a small restaurant that sells take-out fried chicken and biscuits pays $2,500 in rent each month,$500 in utilities,$750 interest on his loan,insurance premium of $200,and advertising on local buses $250 a month.A bucket of take-out chicken is priced at $9.50.Unit variable costs for the bucket of chicken are $5.50.How many small buckets of chicken does the restaurant need to sell to break even?

Ace Shoe Company sells heel replacement kits for men's shoes.It has fixed costs of $6 million and unit variable costs of $5 per pair.Ace would like to earn a profit of $2 million; how many pairs must they sell at a price of $15?