Exam 14: Pricing Strategies and Tactics

Arm's-length pricing:

Cost-plus pricing is favored by many constituents,such as governments,to ensure proper intracompany pricing.

Which of the following can marketers use to discourage other marketers from entering the market?

Product line pricing occurs typically in conjunction with positioning decisions.

In first-time pricing,the objective of _____ is to achieve the highest possible contribution in a short time period.

Skimming is selling goods overseas for less than in the exporter's home market or at a price below the cost of production,or both.

_____ are frequently used as a basis for price determination largely because they are easily measured and provide a floor under which prices cannot go in the long term.

Cost-driven and market-driven approaches to pricing products for export are associated with:

Factoring houses are places where customs affords reliable accounting of the dollar increment of actual purchasing power.

_____ is a form of barter aimed at reducing the effect of the immediacy of the transaction.

Which of the following statements is true of delivered at place (DAP)?

Incoterms are the terms agreed upon by nation states that allow for the incorporation of companies as recognized globally.

What is the process of setting an export price?

Which of the following provides the exporter with a complete financial package that combines credit protection,accounts-receivable bookkeeping,and collection services to take away many of the challenges that come with doing business overseas?

When penetration pricing is used,the product is offered at a low price intended to generate volume sales and achieve high market share,which would compensate for a lower per-unit return.

Destination-specific adjustment of markups in response to exchange-rate changes are referred to as:

Price changes are called for when:

_____ pricing is set regardless of the buyer or may be based on average unit costs of fixed,variable,or export-related costs.