Exam 14: Arriving at the Final Price

discounts,reductions from list or quoted prices to buyers for performing some activity are referred to as

Hummer was an attention-getting SUV that sold for $80,000 in a limited number of dealerships.Then,General Motors developed a smaller version for $50,000 that could be sold in many more outlets.To cover costs and reach the market faster,the Hummer H2 shared some parts with other GM cars.To which customer effects did Hummer marketing managers need to pay particular attention?

Setting a price to achieve a profit that is a specified percentage of the sales volume is referred to as __________.

Geographical Pricing Map A -Multiple-zone pricing refers to

are three special adjustments to list or quoted price?

hardware store advertises a ⅜" Black and Decker Power Drill for $29.95.You enter the store intending to purchase the drill.The salesperson informs you that they are all sold out.She tells you that the "sale" drills were factory seconds and that if you are going to be doing any kind of serious woodworking,you should buy the Model 3309,which sells for $49.99.This scenario has elements of which type of deceptive pricing?

Which of the following type of business is most likely to use cost-plus percentage-of-cost pricing?

Figure 14-3 -Figure 14-3A above is a graph that shows which pricing strategy?

Price fixing refers to

uniform delivered pricing,the price the seller quotes

Geographical Pricing Map A -According to the Geographical Pricing Map A above,if the plant in Denver charges $20 to ship its products to all of the identified cities,it is most likely using which type of pricing?

response to Duracell's introduction of the Duracell Ultra battery,Energizer introduced an Advanced Formula battery.But unlike Duracell,Energizer priced its batteries at a low initial price to attract the mass market.Was Energizer's pricing strategy to take market share from Duracell a success?

skimming pricing policy is likely to be most effective when: (1)enough customers are willing to buy immediately at the high initial price; (2)lowering the price has only a minor effect on increasing sales volume and reducing unit costs; (3)customers interpret high price as signifying high quality; and (4)__________.

Figure 14-8 -Consider Figure 14-8 above."C" represents which of the following legislative acts?

reduction from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called

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)deceptive pricing; (4)predatory pricing; and (5)__________.

Consumer Goods Pricing Act,the Sherman Act,the Federal Trade Commission Act,and the Robinson-Patman Act all address different aspects of deceptive pricing.Select one example for each act and explain which aspects of the practice would be considered illegal.

Setting a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors is referred to as __________.

Marion Seafood,Inc.sells 5-pound packages of Alaskan salmon.Assume its unit variable cost per package is $30 and its fixed cost is $250,000.It wants a target profit of $38,000 on a volume of 16,000 packages.What should the firm charge for a five-pound package of salmon?

custom kitchen cabinet storeowner wishes to use a target return-on-sales pricing approach to establish a price for a typical section of cabinets.Assume that variable costs total $200 per unit,fixed cost is $44,000,and the storeowner desires a target profit of 20 percent return on sales at an annual volume of 400 cabinets.What price should be charged for a typical cabinet section?