Exam 11: Pricing and Credit Strategies

Geographic pricing is a technique that greatly simplifies the pricing function.

Price is a measure of what the customer must exchange to obtain goods and services and is an indicator of value to the customer.

One advantage of installment loans for a small business is that the business owner retains a security interest in the item sold as collateral on the loan.

In cases in which development costs are extremely high,as in new high technology products,the skimming technique helps the firm recoup its research and development costs in a shorter time span.

A ________ strategy works well when a company has a mature product,loyal customers,a reputation for quality,and few competitors.

XYZ manufactures computer hardware.The marketing executives,in order to increase the market share,forced a business to accept a suggested retail price and not to sell the items below the stated price.

For a service firm,labor and materials comprise the largest portion of the cost of the service provided.

A firm sells small-ticket items to their regular customers on customer charge accounts and then bills the customers each month.This type of credit arrangement is called:

A penetration pricing strategy allows the business to build market share quickly.

Brenda is starting her business by offering exclusive hand-bags.The desired image that she should set for her handbags is "exclusive." She should set the price at:

Baseball cards usually sell for 10 cents each.The Card Shop advertises them at "12 for $1.00." This is:

Odd pricing is a form of psychological pricing.

The manufacturer's suggested price takes into account the small firm's cost structure and its competitive situation.

A reliable cost accounting system is necessary for accurate pricing.The traditional method of product costing,where the costs of direct materials,direct labor,and factory overhead are included,is called ________ costing.

What are debit cards?

Small businesses whose pricing decisions are greatly affected by the costs of shipping merchandise to customers across a wide range of geographic regions frequently employ one of the ________ techniques.

________ pricing policy is used to introduce a relatively low-priced good into a market where no "elite segment" exists.

________ is grouping together several products or services,or both,into a package that offers customers extra value at a special price.

________ costing includes only those costs that vary directly with the volume of an item produced.

Under FOB Factory terms,the customer pays all shipping costs.