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Rather than billing clients by the hour, some lawyers and their clients agree on a fixed fee oriented on expected costs plus a profit for the law firm.Which pricing method are they using?


A) target pricing
B) cost-plus pricing
C) customary pricing
D) experience curve pricing
E) bundle pricing

F) C) and E)
G) A) and C)

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Managing for long-run profits implies that a company


A) will give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
B) will maintain a given price range to ensure there is no loss of customers over time, even if the profit margin declines.
C) all profits will be invested in bonds or other certificates of deposit in order to counteract any drastic economic changes in the future.
D) all profits will be reinvested into market research or product research rather than returned to shareholders.
E) all products, product lines, or divisions that cannot maintain their pricing goals will be dropped.

F) A) and E)
G) All of the above

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List four of the demand oriented approaches to selecting an approximate price level and define what they are.

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Demand-oriented approaches include:
1.Sk...

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The price equation formula is final price equals [list price] minus [(__________) plus (allowances) plus [extra fees].


A) salaries
B) commissions
C) trade-ins
D) incentives
E) taxes

F) B) and D)
G) A) and C)

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_________.


A) lowering the price has only a minor effect on increasing sales volume and reducing unit costs
B) when the high initial prices do not attract competitors
C) many segments of the market are price sensitive
D) when customers interpret high prices as signifying high quality
E) customers are willing to buy immediately at the high initial price

F) C) and E)
G) A) and D)

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What are the conditions favoring the use of penetration pricing?

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The conditions favoring penetration pric...

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Which of the following statements regarding sales goals is most accurate?


A) For marketing managers, sales revenue or unit sales are more easily addressed than profit goals.
B) Cutting prices in one line to raise unit sales often results in an increase in sales for related products as well.
C) Very often cutting prices results in a decrease in market share.
D) Setting unit sales as a profit objective results in price wars with competitors, so the practice is limited to industries with as few competitors as possible.
E) An advantage of increasing unit sales is that it always results in an increase in profits.

F) All of the above
G) C) and D)

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FIGURE 12-1 FIGURE 12-1 -Figure 12-1 above represents the four approaches for selecting an appropriate price level.Cubicle B represents which approach to finding the approximate price level according to the items listed in the cell? A) demand-oriented approach B) cost-oriented approach C) profit-oriented approach D) competition-oriented approach E) profit-equation approach -Figure 12-1 above represents the four approaches for selecting an appropriate price level.Cubicle "B" represents which approach to finding the approximate price level according to the items listed in the cell?


A) demand-oriented approach
B) cost-oriented approach
C) profit-oriented approach
D) competition-oriented approach
E) profit-equation approach

F) B) and C)
G) A) and E)

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What is the difference between a one-price policy and a flexible-price policy?

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A one-price policy is setting one price ...

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FIGURE 12-10 FIGURE 12-10 -A National Bureau of Economic Research study of 750,000 car purchases indicated that some groups of car buyers, on average, paid roughly $483, $423, and $105 more, respectively, for a new car in the $21,000 range than the typical purchaser (Figure 12-10 above) .Who are the car buyers in B ? A) Women B) The elderly C) Mexicans D) Hispanics E) African Americans -A National Bureau of Economic Research study of 750,000 car purchases indicated that some groups of car buyers, on average, paid roughly $483, $423, and $105 more, respectively, for a new car in the $21,000 range than the typical purchaser (Figure 12-10 above) .Who are the car buyers in "B"?


A) Women
B) The elderly
C) Mexicans
D) Hispanics
E) African Americans

F) All of the above
G) B) and E)

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Predatory pricing is


A) an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.
B) the practice of charging a very low price for a product with the intent of driving competitors out of business.
C) the practice of charging different prices to different buyers for goods of like grade and quality.
D) a conspiracy among firms to set prices for a product or service.
E) a seller's requirement that the purchaser of one product also buy another product in the line.

F) B) and E)
G) A) and C)

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Cash 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


A) quantity discount.
B) flexible pricing policy.
C) promotional allowance.
D) purchase inducement.
E) manufacturer's inducement.

F) C) and D)
G) B) and E)

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A hardware store advertises a 3/8" 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?


A) comparable value comparisons
B) former price comparisons
C) comparisons with suggested prices
D) conditional bargains
E) bait and switch

F) D) and E)
G) A) and D)

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What are discounts? List the four kinds that are especially important in marketing pricing strategy.

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Discounts are reductions from list price...

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With profit-oriented approaches a price setter may choose to balance both _________ and _________ to set price.


A) cost; revenue
B) cost; profit
C) cost; service
D) cost; supply
E) cost; demand

F) C) and D)
G) B) and C)

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FIGURE 12-6 FIGURE 12-6 -In Figure 12-6 above, as the two diagonal lines on a demand curve graph show a shift from left to right, it most likely represents A) an increase in demand that did not require an increase in price. B) an increase in demand that required an increase in price. C) no change in price and no change in demand. D) no change in demand or price but a greater profit due to economies of scale. E) increases from $.50 to $1.50 per unit. -In Figure 12-6 above, as the two diagonal lines on a demand curve graph show a shift from left to right, it most likely represents


A) an increase in demand that did not require an increase in price.
B) an increase in demand that required an increase in price.
C) no change in price and no change in demand.
D) no change in demand or price but a greater profit due to economies of scale.
E) increases from $.50 to $1.50 per unit.

F) A) and C)
G) A) and B)

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Charging different prices to maximize revenue for a set amount of capacity at any given time is referred to as


A) demand backward pricing
B) target pricing
C) yield management pricing
D) skimming pricing
E) penetration pricing

F) All of the above
G) A) and B)

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


A) cost-plus percentage-of-cost pricing
B) customary pricing
C) standard markup pricing
D) experience curve pricing
E) target profit pricing

F) C) and D)
G) B) and E)

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Ampro-Mag is a small company that makes materials for safely controlling hazardous spills of all kinds.It sells these items as a neutralizing kit priced at $100.The costs of the materials that go into each kit are $45.It costs $5 in labor to assemble a kit.The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising in trade journals, and $3,500 for the monthly salary of its owner.What is Ampro-Mag's monthly break-even point in terms of number of neutralizing kits sold?


A) 47 neutralizing kits
B) 68 neutralizing kits
C) 75 neutralizing kits
D) 104 neutralizing kits
E) 310 neutralizing kits

F) C) and E)
G) A) and B)

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Penetration pricing refers to


A) charging different prices to different buyers for goods of like grade and quality.
B) setting the highest initial price that customers really desiring the product are willing to pay.
C) setting a low initial price on a new product to appeal immediately to the mass market.
D) setting a marketing price for product or product class oriented on a subjective feel for the competitors' price or market price as the benchmark.
E) setting prices a few dollars or cents under an even number.

F) A) and E)
G) B) and E)

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Showing 261 - 280 of 414

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