TEST 5

Question 1

The price tactic that tries to get consumers into a store through false or misleading price advertisement and then uses high pressure selling to persuade consumers to buy more expensive merchandise.

Answer 1

Bait Pricing

Question 2

Setting prices for an entire LINE of Products

Answer 2

Product Line Pricing

Question 3

The process during which both the sales person and the prospect offer special concessions in an attempt to arrive at a sales agreement.

Answer 3

Negotiation

Question 4

A price tactic that uses odd numbered prices to connote bargains and even numbered prices to imply quality.

Answer 4

Odd-Even Pricing

Question 5

A method of determining what sales volume must be reached before total revenue equals total costs.

Answer 5

Break-even Analysis

Question 6

The practice of marking up prices by 100% or doubling the cost.

Answer 6

Keystoning

Question 7

A companies product sales as a % of total sales for that industry.

Answer 7

Market Share

Question 8

The price at which demand and supply are equal.

Answer 8

Price Equilibrium

Question 9

Areas of a business in which customers have contact with the company and data may be gathered.

Answer 9

Touch Point

Question 10

A method of setting prices that occurs when marginal revenue equals marginal cost. MR=MC
Ex: Apple lowering price of iPhone

Answer 10

Profit Maximization

Question 11

Price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store.

Answer 11

Leader Pricing

Question 12

The cost of buying the products from the producer plus amounts for profit and for expenses not otherwise accounted for

Answer 12

Markup Pricing

Question 13

Net profit AFTER taxes divided by total assets.

Net Profit/Total Assets

Answer 13

Return on Investment (ROI)

Question 14

Modification of uniform delivered pricing that divides the U.S (or the total market) into segments or zones and charges a flat freight rate to all customers in a given zone.

Answer 14

Zone Pricing

Question 15

Price tactic that requires the buyer to absorb the freight costs from the shipping point. “Free on Board”

Answer 15

FOB Origin Pricing

Question 16

A discount to WHOLESALERS and retailers for performing channel functions. Steady production year round.

Answer 16

Functional Discount

Question 17

Marketing two or more products in a single package for a special price. Ex: cable+internet

Answer 17

Price Bundling

Question 18

Revenue - Expenses

Answer 18

Profit

Question 19

The set of steps a salesperson goes through in a particular organization to sell a particular product or service.

Answer 19

Sales Process (sales cycle)

Question 20

The change in total costs associated with a one-unit change in output. Marginal=1

Answer 20

Marginal Cost (MC)

Question 21

A price reduction offered to buyers buying in MULTIPLE units or above a specific dollar amount.

Answer 21

Quantity Discount

Question 22

Price reduction for buying merchandise out of season.

Answer 22

Seasonal Discount

Question 23

The extra REVENUE associated with selling an extra unit of output or the change in total revenue with one unit change in output.

Answer 23

Marginal Revenue (MR)

Question 24

A statement of the salesperson sales goals, usually based on sales volume.

Answer 24

Quota

Question 25

A pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass market.

Answer 25

Penetration Pricing

Question 26

A situation in which total revenue remains the same when prices change.

Answer 26

Unitary Elasticity

Question 27

A situation in which consumer demand is sensitive to changes in price

Answer 27

Elastic Demand

Question 28

The practice of charging very low prices for a product with the intent of driving competition out of the business or market.

Answer 28

Predatory Pricing

Question 29

A price tactic in which the seller pays all or part of the actual freight changes and does not pass them onto the buyer

Answer 29

Freight Absorption Pricing

Question 30

A pricing objective that maintains existing prices or meets the competitors prices. Ex: Wal-Mart

Answer 30

Status Quo Pricing

Question 31

Price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight charge.

Answer 31

Uniform Delivered Pricing

Question 32

A payment to a dealer for promoting the manufacturers products.

Answer 32

Promotional Allowance

Question 33

A pricing policy whereby the form changes a high introductory price often coupled with heavy promotion

Answer 33

Price Skimming

Question 34

A technique for adjusting prices that uses complex mathematical software to probably fill unused capacity by discounting early purchases, limiting early sales all these discounted prices and overbooking capacity

Answer 34

Yield Management System (YMS)

Question 35

The price charged to customers multiply by the number of units sold. Price X #units sold.

Answer 35

Revenue

Question 36

A sales practice that involves building, maintaining and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.

Answer 36

Relationship Building (consultive)

Question 37

Practice of offering a product line with several items at specific price points.

Answer 37

Price Linning