Exam 14: Arriving at the Final Price

What are the six major steps involved in setting prices?

A method of pricing where the price the seller quotes includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur is referred to as

Consumers buy water and soda from vending machines. Traditionally, the price of each of these products is about $1.25. If a marketer charges a significantly higher price for such products dispensed by vending machines, such as $2.00 per item, sales are likely to decline. In order to avoid declines in sales, marketers tend to be very consistent in the prices they charge for vending machine products. This is an example of marketers employing a __________ strategy.

Creative Quilts Studio sells hundreds of colors and types of fabric and thread. To price its inventory, the owners add 50 percent to the cost of each bolt of fabric and every spool of thread. What is this pricing approach called?

The Robinson-Patman Act allows for price differentials to different customers under several conditions. Which of the following practices would be permitted?

Manufacturers use seasonal discounts to

Incremental analysis might take the form of such questions as, "Should we extend our hours to include Sundays?" or "What if we put more apples in the pie?" The basic principle is that

Seasonal discounts are used by manufacturers to

Mark Johnson, the manager of a discount consumer electronics store, was approached by the manufacturer's representative on behalf of a marketer of a popular and profitable line of DVD storage racks. The manufacturer's representative implied that if Johnson doesn't raise the retail prices for the storage racks to those paid by the marketer's nondiscount customers, Johnson's supply of racks may be severely curtailed. The manufacturer's representative is guilty of attempting

If the cash discount terms for a $500 purchase are 4/10 net 30, the number 10 refers to

Your local instant photocopying service charges 10 cents a copy up to 25 copies, 9 cents a copy for 26 to 99 copies, and 8 cents a copy for 100 copies or more. What kind of adjustment to its list or quoted price of 10 cents per copy is the photocopying service using?

A construction company was offered a 3 percent reduction in price off all invoices from a lumberyard for paying within 10 days of issue. The lumberyard was offering a

When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold), the greeting card company was trying to appeal to a mass market that was price-sensitive. Hallmark was using a(n) __________ pricing strategy.

Multiple-zone pricing refers to

Five pricing practices are scrutinized because of potential unethical or illegal actions. They are (1) price fixing, (2) price discrimination, (3) deceptive pricing, (4) geographical pricing, and (5) __________.

Discounts that are designed to encourage repeat buying by a single customer over a given time period, such as a year, are referred to as

Reductions from list or quoted prices to buyers for performing some activity are referred to as

The three major types of special adjustments to list or quoted price are

Companies use a __________ to assess whether its products and brands are above, at, or below the market.

The way that a person navigates through an online marketer's website is called