Price

Question 1

Is the amount of money charged for a good or service that a customer is willing to pay to get the product or service.

Answer 1

Price

Question 2

The only revenue-generating element in the marketing mix.

Answer 2

Price

Question 3

Product Cost Estimation

Answer 3

unit variable cost, fixed cost

Question 4

It refers to how much it would cost to manufacture one unit of the product. This includes the cost of direct materials, direct labor, and direct overhead.

Answer 4

unit variable cost

Question 5

Under Unit Variable Cost

Answer 5

direct material cost, direct labor cost, direct overhead cost

Question 6

Are the costs of raw materials or components of a finished product.

Answer 6

direct material cost

Question 7

Are the wages, benefits, insurance that are paid to workers directly involved in manufacturing and producing the goods

Answer 7

direct labor cost

Question 8

Are manufacturing or factory-related costs incurred in producing a product. Ex. energy, water, and other utility costs for every blouse produced. It is computed by:

Answer 8

direct overhead cost

Question 9

Are expenses associated with your business production that do not change over a short period of time, even if there are changes in the company sales volume or other activity levels.

Answer 9

fixed costs

Question 10

Pricing Strategies

Answer 10

mark-up pricing, target return pricing, odd pricing or psychological pricing, loss leader pricing, price lining, prestige pricing, marginal pricing, predatory pricing, going rate pricing, promotional pricing

Question 11

When new products are introduced into the market, one of the two pricing strategies can be used:

Answer 11

price skimming, penetration pricing

Question 12

Is the pricing strategy of adding a certain value or percentage to the total cost of a good or service to determine its selling price, resulting in a profit for the company

Answer 12

mark-up pricing

Question 13

The manufacturer determines the price based on a target rate of return on the investment.

Answer 13

target return pricing

Question 14

It takes into account the time value of money as well as the profit that an investor expects from his investment.

Answer 14

target return pricing

Question 15

It is setting prices lower than a whole number. It creates a subconscious impact on consumers that the price is lower than the product tagged to encourage spending more than intended

Answer 15

odd pricing or psychological pricing

Question 16

It is an aggressive pricing strategy of selecting one or more products to sell below its production cost – or at a loss, to entice buyers to step foot in the store and stimulate sales of other expensive and profitable goods to make up for the loss.

Answer 16

loss leader pricing

Question 17

It is a pricing strategy used by retailers to simplify a consumer’s buying decision by grouping common items at set price points

Answer 17

price lining

Question 18

It is a niche selling strategy that involves setting prices at a high level, with no discounting to convey the high quality and positive brand reputation of a product or service

Answer 18

prestige pricing

Question 19

It is where a business organization prices its product at a range below its unit cost but higher than its unit variable cost

Answer 19

marginal pricing

Question 20

It is a pricing strategy of offering a price lower than the unit variable cost, initially resulting in short-term losses. The objective is to drive out a new or persistent competitor out of the market and create a monopoly

Answer 20

predatory pricing

Question 21

It is a pricing strategy of examining the prices of their competitors and adopting the product price as per the rates prevailing in the market especially on par with the competitors

Answer 21

going rate pricing

Question 22

It is a pricing strategy involving a temporary reduction in the selling price of a product/service to induce trial or to encourage repeat purchase

Answer 22

promotional pricing

Question 23

Is a pricing strategy of charging the customer a relatively high price on a breakthrough product and then lowers it over time as demand declines

Answer 23

price skimming

Question 24

It is a pricing strategy where the new product is initially offered at a low price to help a new product or service penetrate a large part of the market at an early stage and attract customers away from competitors

Answer 24

penetration pricing

Question 25

Pricing Strategy Selection

Answer 25

(maximum revenue/ maximum market share) penetration pricing, marginal pricing, going rate pricing, promotional pricing

(maximum profit) price skimming, prestige pricing

(survival) marginal pricing