MKTG 3213- EXAM #2- CH. 9
A grocer has purchased a truckload of frozen dinners for $3 each. The grover operates on a margin of 30% for frozen food items. What is the retail price to the consumer?
$4.29
What is the main difference between the equations for margin and mark-up?
Margin is price-cost and price and mark-up Price-cost cost
Mark-up can be greater than 100%`
True
which of these does not happen in a smart industry?
companies fight with price only
The 'value' created of a product or service is determined from the perspective of the :
customer
Small changes in price do not have a very large impact on bottom line profits
false
You do not need to understand margin and markup of you are using value-based pricing
false
a change in price in elastic market is likely to show--- change in demand when compared to a similar change in an inelastic market
greater
what is the first step in strategic pricing
knowing how your industry behaves
What is defined as responsiveness of demand to changes in price?
price elasticity
What is price skimming?
setting a high price for a new product to skim maximum revenues
What is flat-rate pricing?
single rate per time period
Value -based pricing will always be more profitable than cost-based pricing.
true
--- is not about what we put into our product, it's what our customers get out of it.
value
Which of the following describes peak load or congestion pricing?
variable rate depending on time of day or week
What us dynamic pricing?
variable rate for each customer
What is the definition of price?
what is exchanges for the product, service or idea
What is the breakeven point?
where profits just cover costs
what is the key difference between cost-based pricing and value-based pricing?
where you start the process