ch 14 mkt pricing ii part ii Flashcards
You can buy a General Electric dishwasher for $399 or you can buy a similar Bosch brand dishwasher for $989. Since Bosch uses its pricing strategy to project a high-quality product image, it is most likely using \_\_\_\_\_\_\_\_ pricing. A) bundle B) standard markup C) prestige D) penetration E) cost plus fixed-fee
C) prestige
Price lining is considered to be a \_\_\_\_\_\_\_\_ approach to pricing. A) cost-oriented B) demand-oriented C) profit-oriented D) competition-oriented E) service-oriented
B) demand-oriented
Setting the price of a line of products at a number of different specific price points is referred to as A) odd-even pricing. B) bundle pricing. C) cost-plus pricing. D) price lining. E) prestige pricing.
D) price lining.
If demand for a class of products is elastic at a number of price points but is inelastic between these price points, which pricing approach should be chosen? A) product-line pricing B) skimming pricing C) penetration pricing D) price lining E) odd-even pricing
D) price lining
Target pricing is considered to be a \_\_\_\_\_\_\_\_ approach to pricing. A) cost-oriented B) profit-oriented C) demand-oriented D) competition-oriented E) service-oriented
C) demand-oriented
The pricing approach that results in the manufacturer deliberately adjusting the composition and features of the product to achieve the desired price for consumers is referred to as A) cost-benefit pricing. B) cost-plus percentage-of-cost pricing. C) target pricing. D) cost-plus fixed-fee pricing. E) product feature pricing.
C) target pricing.
Which of these pricing techniques is most sensitive to customers' responses to price? A) cost-plus percentage-of-cost pricing B) target pricing C) experience-curve pricing D) cost-plus fixed-fee pricing E) standard markup pricing
B) target pricing
Airlines, hotels, and car rental firms all engage in \_\_\_\_\_\_\_\_ by varying prices based on time, day, week, or season to match supply and demand. A) skimming pricing B) yield management pricing C) bundle pricing D) target pricing E) prestige pricing
B) yield management pricing
Which of these is a cost-oriented pricing method? A) loss-leader pricing B) standard markup pricing C) at-, above-, or below-market pricing D) price lining E) penetration pricing
B) standard markup pricing
With a cost-oriented pricing strategy, a price setter stresses the ________ side of the pricing problem, and the price is set by looking at
A) demand; revenue.
B) production and marketing; profit.
C) demand; target sales.
D) cost; production and marketing expenses.
E) cost; consumer tastes.
D) cost; production and marketing expenses.
Which of these is a profit-oriented approach to pricing? A) skimming pricing B) target pricing C) loss-leader pricing D) target return-on-investment pricing E) standard markup pricing
D) target return-on-investment pricing
Setting an annual target of a specific dollar volume of profit is referred to as A) target profit pricing. B) target return-on-investment pricing. C) loss-leader pricing. D) at-, above-, or below-market pricing. E) yield management pricing.
A) target profit pricing.
A critical assumption when using target profit pricing is that
A) a higher average price will not cause the demand for a product to fall.
B) a higher average price will cause new competitors to join the industry.
C) a higher average price will be offset by reductions in manufacturing costs.
D) profit is tied to the current value of the dollar in relation to foreign currencies.
E) any price increase will be followed quickly by similar moves from all of your competitors.
A) a higher average price will not cause the demand for a product to fall.
Setting a price to achieve a profit that is a specified percentage of the sales volume is referred to as A) target return-on-investment pricing. B) target return-on-sales pricing. C) loss-leader pricing. D) target pricing. E) standard markup pricing.
B) target return-on-sales pricing.
