Exam 14: Arriving at the Final Price

microwave ovens were in the introduction stage of their product life cycle,some consumers were willing to pay exorbitant prices for these innovative ovens.Taking advantage of this strong consumer desire,marketers set the price for microwave ovens at the highest initial price possible.Marketers of microwave ovens used a __________ pricing strategy.

Figure 14-3B above illustrates which type of pricing approach?

skimming pricing policy is likely to be most effective when

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

critical assumption when using target profit pricing is that

Companies use a "price premium" to assess whether their products and brands are priced above,at,or below the market.More specifically,a price premium is the percentage by which the actual price charged for a specific brand exceeds or falls short of a benchmark established for a similar product or basket of products.This price premium equals:

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

Figure 14-7 -Consider Figure 14-7 above.Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.What does "A" represent?

manufacturer estimates that consumers will accept a price of $275 for a snowboard.If the manufacturer expects to offer trade discounts of 35/15/5 to retailers,wholesalers,and jobbers,respectively,what price will the manufacturer receive for the snowboard?

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)geographical pricing; and (5)__________.

Which of the following pricing techniques results in the manufacturers deliberately adjusting the composition and features of a product to achieve the target price to consumers?

Geographical Pricing Map C -Suppose a firm selects its plant in St.Louis as the location from where it will ship its products to all of the identified cities shown in Geographical Pricing Map C above.The MSRP of the product is $100 but the firm adds a freight surcharge to cover transportation/freight.This surcharge will vary according to the distance between the origin of the shipment-in this case St.Louis-and the destination or customer's location.What is the most likely pricing method this firm is using?

payments or an extra amount of "free goods" awarded sellers in the channel for undertaking certain advertising or selling activities to promote the product is referred to as a

Figure 14-7 -Consider Figure 14-7 above.Suppose a manufacturer quotes price in the following form: List price-$100 less 30/10/5.What does $7.00 represent?

Manufacturers of generic brands use which method of competition-oriented pricing?

company placing an order from the Lab Safety Supply catalog is instructed to add $25.00 to the total cost of the order to pay for shipping.Which method of shipping does this catalog supplier use?

Marketing two or more products in a single package price is referred to as

Product-line pricing involves determining: (1)the lowest-priced product and price; (2)the highest-priced product and price; and (3)__________.

an example of yield management pricing and explain why it is used.

promote their business,some psychics advertise free tarot-card readings and other insights into their customers' futures on television.Unfortunately,this "free reading" has cost some unsuspecting callers as much as $700 in phone charges.This sort of deceptive pricing practice would be primarily monitored by the