Exam 14: Arriving at the Final Price

Adding a fixed percentage to the cost of all items in a specific product class 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,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.

Which of the following statements about penetration pricing is most accurate?

Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

most commonly used pricing method for business products is __________.

Yield management pricing refers to

Rather than billing clients by the hour,some lawyers and their clients agree on a fixed fee based on expected costs plus an agreed upon level of profit for the law firm.Which pricing approach are they using?

After offering a promotional allowance,the price of a product returns to its regular price level.When this happens,the retail store's gross margin on that product __________ on those items that were bought with the allowance but not sold during the special price promotion.

3M decided the retail price for the Greptile Grip golf glove would be $16.95 and then worked backward through markups taken by retailers and wholesalers to determine what price it can charge wholesalers for the product,the firm would most likely be practicing a __________ strategy.

Geographical Pricing Map C -pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1)price fixing; (2)price discrimination; (3)predatory pricing; (4)geographical pricing; and (5)__________.

new car dealer can reduce the list price of a new Ford F-150 pickup truck by offering you a __________ of $1,000 for your 1998 Nissan Altima.

Deliberately selling a product below its customary price,not to increase sales,but to attract customers' attention in hopes that they will buy other products as well,is referred to as

reward wholesalers and retailers for marketing functions they will perform in the future,a manufacturer often gives __________ discounts.

Setting one price for all buyers of a product or service is referred to as __________.

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 non-discount customers,Johnson's supply of racks may be severely curtailed.The manufacturer's representative is guilty of attempting

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

establishing product line pricing,the lowest-priced item is typically positioned as

common forms of pricing include: bait and switch,bargains conditional on other purchases,comparable value comparisons,comparisons with suggested prices,and former price comparisons.What do all these practices have in common? They are all

Red Bull price premium = [(38% ÷ 33%) - 1] = 0.1515 × 100 = 15.2% Monster price premium = [(18% ÷ 19%) - 1] = -0.0526 × 100 = (5.3%) Rockstar price premium = [(7% ÷ 8%) - 1] = -0.1250 × 100 = (12.5%) Other brands price premium = [(37% ÷ 40%) - 1] = -0.0750 × 100 = (7.5%) -Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Red Bull in 2009?

Yield management is considered to be a __________ approach to pricing.