Exam 14: Arriving at the Final Price

Within the channel of distribution for certain types of imported furniture, the typical trade terms are 40/15/10. If a dining room table has a list price of $1,000, how much would the manufacturer sell the table to a jobber for?

A pricing method where a supplier is reimbursed for all costs, regardless of what they may be, and who also receives an agreed upon dollar amount of profit that is independent of the final cost of the project, is referred to as

Geographic adjustments are made by manufacturers or wholesalers to cover

Explain the deceptive pricing practice known as bait and switch.

The two general methods for quoting prices related to transportation costs are FOB origin pricing and

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

Penetration pricing is intended to appeal to which market?

When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499, Amazon was using a __________ pricing strategy.

The key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point. Four common approaches to selecting an approximate price level are (1) demand-oriented, (2) __________, (3) profit-oriented, and (4) competition-oriented approaches.

Odd-even pricing is considered to be a __________ approach to pricing.

A penetration pricing policy is most likely to be effective when

A dynamic pricing policy allows marketers to respond to

Vertical price fixing involves controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price. This practice is also called

Uniform delivered pricing refers to

Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price is referred to as

Predatory pricing is

Geographical adjustments are made by manufacturers or even wholesalers to list or quoted prices to reflect

In some cases, penetration pricing may follow which pricing strategy?

Allowances, like discounts, are

While the most commonly used pricing method for business products is cost-plus pricing, this method is becoming more and more popular among __________ in the service sector.