Exam 14: Arriving at the Final Price

Demand-oriented approaches weigh factors that underlie expected __________ more heavily than such factors as cost, profit, and competition when selecting a price level.

If you were to buy one peach tree and one apple tree from the Stark Bros. fruit trees and landscaping catalog in two separate orders, you would pay a total of $109.99. However, if you order the peach and apple tree together in the same order, you pay only $89.99 each. When purchasing the two trees together, what pricing strategy does Stark Bros. employ?

With cost-oriented approaches, a price setter stresses the cost side of the pricing problem, not the __________ side.

Odd-even pricing is based on

Setting prices a few dollars or cents under an even number is referred to as

Penetration pricing is considered to be a __________ approach to pricing.

Central Ice Machine Co. is located in Omaha, Nebraska, and sells Frick, Sullair, York, and Fes Fuller ammonia refrigeration parts. The company ships these parts using FOB origin pricing. Which of the following statements about the shipment of a Frick reciprocating compressor is most accurate?

A pricing method where all buyers pay the same delivered price for the products, regardless of their distance from the seller, is referred to as

Many cruise lines pay the customer's airfare to the point of cruise departure. What type of price adjustment are the cruise lines using?

The pricing approach that (1) estimates the price that ultimate consumers would be willing to pay for a product; (2) works backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers; and (3) results in the manufacturer deliberately adjusting the composition and features of the product to achieve the price to consumers is referred to as

What is standard markup pricing and when would it be used?

Toro decided to augment its traditional hardware retail distribution channel by also selling through mass merchandisers such as Walmart and Target and setting prices for its products substantially below those of its traditional hardware outlets. As a result, many hardware stores abandoned Toro products in favor of other manufacturers. This is an example of a firm failing to consider __________ effects when setting its final list or quoted price.

Everyday low pricing refers to

Cumulative quantity discounts refers to

Price lining refers to

A promotional allowance is

The manager of a small gasoline station observes that while gasoline sales have been steady, the service side of the business has declined, and mechanics are often idle. He decides to offer a promotion-a $20 off coupon for an oil change that is to be mailed to 800 households within a two-mile radius from the gas station. The cost of printing and mailing is $1,000. The normal cost of an oil change is $40. Materials and labor per oil change costs $15. If 200 customers use the coupon, what will be the total profit of the promotion based on the profit equation?

Supermarket managers use standard markup pricing because it is particularly suited to situations when

Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

The practice of offering a bargain that is conditional on the purchase of other products may exist when a buyer is offered the "1-Cent Sales," the "Buy 1, Get 1 Free," or the "Get 2 for the Price of 1" deal. Such pricing is legal only if