MKTG 3650 Ch 15

All of the above are possible defenses against price discrimination charges.

A manufacturer could try to defend itself against charges of price discrimination under the Robinson-Patman Act by claiming that: any price differences were to "meet competition in good faith." the price differences did not injure competition. the price differences were justified on the basis of cost differences. the products were not of "like grade and quality." All of the above are possible defenses against price discrimination charges.

Experience curve effects.

A manufacturer has set the initial price of its product below the product's AVC. The manufacturer assumes that the low price will be attractive to enough consumers so that market share can be acquired very rapidly. The producer further assumes that, as additional market share is attained, AVC will be reduced substantially. In fact, when total sales hit the 20,000 unit point, the producer expects AVC to drop below price. The manufacturer is most likely making use of: Scale economies associated with increased manufacturing efficiency as plant capacity is approached. Reliance on the likely inelastic demand that should exist for this product. Reliance on a high quality, prestige image that can be expected to generate high levels of market demand. Experience curve effects. None of the above.

AVC declines by 10% with each doubling of cumulative output

A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units are produced. The producer expects an experience constant or rate of about .9. The experience constant or experience rate is interpreted as: AVC declines by 90% with each doubling of cumulative output AVC declines by 9% with each doubling of cumulative output AVC declines by 10% with each doubling of cumulative output AVC declines by 1% with each doubling of cumulative output None of the above is correct

$9.11

A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units are produced. The producer expects an experience constant or rate of about .9. The producer can expect AVC of ____________ with the third doubling (within $.10). $10.13 $10.35 $9.11 $9.42 None of the above is within the specified boundaries.

$63.00

A manufacturer sells a product for $35 to a wholesaler, and the wholesaler sells it to a retailer. The wholesaler's normal markup (based on selling price) is 20%. The retailer prices the item to consumers to include a 30% markup (also based on selling price). What is the selling price to the consumer? (Select the closest answer) $60.00 $63.00 $66.00 $69.00 $71.00

Preventing competitive entry by signaling competitors that profit potential is limited due to small or non-existent margins.

A penetration pricing strategy is most likely to be used when pricing objectives focus on: Preventing competitive entry by signaling competitors that profit potential is limited due to small or non-existent margins. Manipulating consumers' psychological impressions of price as an indicator of product quality or status. Maximizing profits on a per unit basis. Pricing at the same level as competitors to avoid potential price wars Penetration pricing cannot be used in any of the situations suggested above.

Prestige pricing

A profit-oriented manufacturer of a consumer durable product faces a demand curve that is upward sloping to the right until extremely high prices are reached. For these latter prices, the demand curve tips over and is downward sloping. Which of the following pricing approaches is most consistent with the demand curve described? Prestige pricing Average cost-pricing Bait pricing Penetration pricing Experience curve pricing

Slotting allowance

A reduction from list price given to middlemen to get shelf space for a product is a: Brokerage allowance Trade discount Push money allowance Self allocation Slotting allowance

Cutting the regular price on a few items with the hope of attracting customers.

A retail firm that uses leader pricing is: Engaged in legal, but unethical price gouging. Cutting the regular price on a few items with the hope of attracting customers. Leading the industry in pricing and encouraging its competitors to raise their prices, too. Selling its most popular products at higher prices. Raising the price of its best-selling products.

To offset the handling costs for a new product.

A retailer might expect a stocking allowance: To pass along to retail salesclerks who aggressively sell the product. To offset the handling costs for a new product. For paying the supplier's invoice before the product is delivered. If the manufacturer can't fill an order by the promised delivery date. None of the above--stocking allowances only apply to wholesalers.

$214

A retailer pays $75 for a leather jacket and desires a 65% mark-up on products of this type. What will be the price to consumers for this jacket (Select the closest answer) $214 $215 $216 $217 $218

$36.00

A retailer pays a wholesaler $24.00 for an item and then sells it with a 50 percent markup based on cost. The retailer's selling price is: (Select the closes answer) $32.00 $48.00 $36.00 $24.50 $40.00

bait pricing

A tire retailer is advertising a very low price on a popular size tire. When a customer comes into the store, the clerk says the low-priced item is sold out, and tries to convince the customer to buy the top-of-the-line model--claiming the low priced model is not a very good buy even at the low price. This is an example of: full-line pricing value in use pricing price lining bait pricing leader pricing

Reference pricing

Alberton's supermarket prominently displays the prices of its brands side-by-side with prices you may pay at competing grocery stores for the same brand. Albertson's hopes stimulate added sales inducing the perception that consumers are getting a 'deal.' Alberston's is using: Captive pricing Skimming pricing Reference pricing Price lining Every-day low pricing

Horizontal price fixing

Assume that a number of Texas oil refiners decide to work together to unformly restrict output with the goal of stablizing declining prices. These firms are likelyl to be accused of ____________ . Price discrimination Vertical price fixing Horizontal price fixing Price lining Price bundling

450,000 units

Assume that you are estimating the demand curve for a product using buy-response data and have collected the following via a survey: Price % Who Will Buy 5.00 1% 4.75 10% 4.50 25% 4.25 45% 4.00 60% 3.75 75% 3.50 90% Assume that research suggests that your target market consists of approximately 500,000 persons. You anticipate that each buyer will purchase an average of 1.5 units of the product. What level of demand can you expect at the $4.00 price? (round to the nearest unit). 450,000 units 300,000 units 60 units 750,000 units none of the above

$95.00

Blue Ridge Knives wants to set its selling price on a custom knife so that the retail list price will be $150--taking into account markups of 10 percent at wholesale and 30 percent at retail. At what price should Blue Ridge Knives sell the item to wholesalers? (Select the closest answer). $80.00 $85.00 $90.00 $95.00 $100.00

Cost-volume-profit analysis

Break-even analysis is normally conducted during the __________ stage of the price setting process. Setting price objectives Identifying price strategies Setting base price Cost-volume-profit analysis Pricing management

14

Cash discount terms of 2/10, net 60 on an invoice would--in effect-- amount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice within the 10 days allowed. 72 14 18 36 22

49%

Consider the following data: TFC = $1,500,000 per year, price = $.79; AVC = $.39. What is the Contribution Margin? (Select the closest anwswer) 39% 49% 59% 69% 79%

.39

Consider the following data: TFC = $1,500,000 per year; price = $.79; AVC = $.39. What is the Unit Contribution? (Select the closest answer) .39 .49 .59 .69 .79

Bundled pricing

Consumers normally pay for film and processing separately. When Eckerd Drugstores advertises one price for the cost of a roll of film and this price includes the cost of processing the film, they are using Flexible pricing Bait pricing Prestige pricing Bundled pricing Promotional pricing

Cost-plus pricing

Custom Creamery located in South Dallas makes 2,000 pies per day. The total cost per raspberry-apple pie is $2.25. Its average fixed costs equal $1.00 per pie. The company has calculated that if its charges $4.50 per pie, it will realize a 55 percent profit on the total cost of each pie. What pricing method is Custom Creamery using? Expected pricing Experience curve pricing Marginal cost pricing Cost-plus pricing Mark-up pricing

34

DrainKing produces an excellent professional drain-cleaning machine sold to plumbing businesses. The total variable costs for making each unit are $325.00. DrainKing's average selling price for the unit is $750.00. DrainKing's fixed costs of production and sales are $4,500 per month. If DrainKing desires $10,000 in profit each month, how many units must it sell each month? (Select the closest answer) 30 32 34 36 38

Fixed production costs

Even when production stops (i.e. no units produced), the firm still generally incurs some _________. Variable production costs Marginal costs Psychological costs Fixed production costs Total values costs

Cumulative quantity

Every time you buy a protein shake at Discount Sport Nutrition (DSN) you can have your Discount Sport Nutrition card punched. When the card has 12 punches, your thirteenth shake is free. DSN is using a _____ discount. Seasonal Cash Non-cumulative quantity Trade Cumulative quantity

Aggressively use lower prices to buy market share from competitors

Firms that are pursuing a strategy of price competition are more likely to: Employ follow-the-leader pricing in order to avoid price wars in their industry Aggressively use lower prices to buy market share from competitors Set prices higher than competitors to signal greater value to buyers Set prices lower than competitors to enhance the quality images of their brands. Price their brands in a comfortable competitive range to avoid "rocking the boat."

Promotional allowance

For featuring Lego Sets prominently in its store window, Toy Emporium, a store that carries educational toys, received a free motorized Ferris Lego Wheel kit, valued at $150. This is an example of a: Forward dating Seasonal discount Cash discount Promotional allowance

Air conditioning system

For which of the following products would a manufacturer be most likely to offer a seasonal discount? Aspirin Weight-training gloves Air conditioning system Microwave ovens Forklift trucks

A designer evening dress

For which of the following products would a retailer be LEAST likely to use odd pricing? Chewing gum A designer evening dress Lean Cuisine diet meals Reams of computer paper Bic cigarette lighters

3,750,000

Given the following data, find the break-even point in units: TFC = $1,500,000 per year; price = $.79; AVC = $.39. (Select the closest answer). 3,000,000 3,250,000 3,500,000 3,750,000 4,000,000

Inverse demand

Humphrey Studio sells reproductions of European antiques. Last year sales were disappointing. The studio owner decided to increase the price of each item by about 25%. The next year there was a 20% increase in units sold. The studio apparently experienced: Profit programming Expected price effects Inverse demand The law of demand None of the above

Freight-absorption

In order to offset the competitive disadvantage of FOB plant pricing, Texas Granite Company in Dallas could use _____ pricing to ship its products to building contractors and furniture restorers in any part of the United States. Uniform delivered Freight-absorption Zone-delivered Market-skimming Market-penetration

Total costs of the product equals total sales revenue from the product.

In price determination, given a particular selling price, the break-even point is where: Profit is maximized Sales volume is maximized Marginal cost equals total sales Marginal cost equals marginal revenue Total costs of the product equals total sales revenue from the product.

Price objectives

In the price setting process, __________ are considered to be the role that price is expected to play in the firm's marketing program. Price objectives Price strategies Price tactics Pricing techniques and tools None of the above

Price strategies

In the price setting process, __________ are the fundamental approaches to setting and managing price to achieve the firm's objectives. Price objectives Price strategies Price tactics Pricing techniques and tools None of the above

The seller probably was using zone-delivered pricing.

Joe lives in Hawaii and is a frequent buyer of antiques on Internet auction sites. He is used to paying higher shipping costs than his brother who lives in Colorado and who also likes to buy antiques on the Internet. The price differential is most likely because: The current legal interpretation of the Robinson-Patman Act required the price differential The rules and regulations of the Federal Trade Commission required the price differential The seller set pricing differentials based on the existence of inverse demand The seller probably was using zone-delivered pricing. The seller was using cash discounts.

Relative values

John is considering the purchase of a new car. As he evaluates the brands in which he is most interested he is becoming increasingly concerned with the trade-offs between performance, style, quality, and comfort and price. He is also beginning to think about the other "costs" of acquiring the car such as what others will think of his choice. John apparantley is evaluating the ___________ of the alternatives being considered. Risks Relative values Utilities Merits Exchange rates

Variable costs

Last summer, to earn money for their college tuition, George and Tom operated a food kiosk at Clearwater Beach, Florida for 3 months. They sold soft drinks, chips, crackers, and candy bars. A month before they were planning to open, Larry found a location that rented for $500 a month and a small refrigerator unit which they rented for $60 per month. Alan found distributors for the food products as well as for the paper products that they would need. Alan also purchased a business license for $80 and bought 3-month's worth of liability insurance for $100. The cups, straws, napkins, and extra sales people needed to staff the stand are all examples of: Marginal costs Break even points Variable costs Fixed costs Average costs

Encourage larger individual orders.

Noncumulative quantity discounts are primarily offered by a seller in order to: Encourage the buyer to make all of his or her purchases from this seller over an extended period of time. Avoid having to offer promotional allowances. Give preferential treatment to certain customers. Encourage larger individual orders. Comply with the Robinson-Patman Act.

$255

On May 15, Ann's Café received a $265 invoice for restaurant supplies. The invoice offered the following terms, "3/14, n/30." If Ann pays the invoice by May 25, she should make her check out for: (Select the closest answer). $225 $235 $245 $255 $265

So as to avoid charges of illegal price discrimination

One of the major difficulties of zone-delivered pricing is determining zone boundaries _____________ . That have the same number of customers So as to avoid charges of illegal price discrimination That are equal in dollar sales potential Such that the prices are the same for each zone That are equal in geographic size

Offering a noncumulative quantity discount

Organic Building Products Co. wants to keep its inventory low. Which of the following would be MOST likely to encourage customers to take over more responsibility for the storage function? Specifying invoice terms of 2/10, net 30 Offering a noncumulative quantity discount Using zone pricing Offering a cash discount Setting a skimming price

1,300

Organic Specialties sells organic mixes for soups. The company produces 5,000 packages per day. The total variable cost for making one bag of Organic split pea soup is $3. The average fixed cost per bag is $.90. The company charges $6.50 per bag and earns a 40 percent profit. Calculate the break-even point in units. 1,200 1,300 1,400 1,500 1,600

Introduction

Prices for products are usually at their highest point during the ________________ stage of the product's life cycle. Conceptualization Introduction Maturity Decline Harvesting

Quantity discounts

Producers offer ___________ to encourage customers to buy in larger amounts or to make most of their purchases from the same seller. Functional discounts Quantity discounts Seasonal discounts Promotional allowances Trade discounts

Higher than other brands in the product category

Products that are intended to convey prestigious or high quality images usually are priced _____________ . Lower than other brands in the product category Higher than other brands in the product category Competitively with lower priced versions of the product To avoid accusations of predatory pricing To avoid scutiny by the FTC for possible price fixing

Promotional allowance

Revlon cosmetics paid one-half of the advertising cost for the large retail chain Macy's to run a series of ads on local cable TV channels. Each of the ads emphasized that Macy's carried the complete line of Revlon products. This would be an example of a: Promotional allowance Forward dating Seasonal discount Cash discount Quantity discount

10%

Rocky Mountain Furniture Co. has total fixed costs of $100,000 a year. The owner estimates that average variable costs for its products are $135 next year. Products are sold directly to retailers through a broker. The broker's commission is included in the estimate for variable costs. The average selling price to retailers will be $175. If total industry sales are expected to be about $5,000,000 next year, what market share does Rocky Mountain Furniture need to break even? (Select the closest answer) 5% 10% 15% 20% 25%

$15.00

Rocky Mountain Gift Products sold its products through wholesalers and retailers--allowing the wholesalers a markup of 25 percent and retailers a markup of 40 percent. If the retail selling price is $100 and the manufacturer's cost is $30, what markup in dollars did Rocky Mountian Gifts Products receive on the sale of this product? (Select the closest answer) $12.00 $13.00 $14.00 $15.00 $16.00

$13,100

Six ounces of Keith's Gourmet Beef Jerky sells for $10.50. The fixed costs for its manufacturer totals $5,000,and each 8-ounce package of beef jerky has a variable cost of $6.50. Compute the dollar break even point. $13,000 $13,100 $13,200 $13,300 $13,400

Push money

Some manufacturers give ______________ to retailers to pass on to the retailers' sales clerks to encourage aggressive selling of specific items or lines. Cash discounts Slottine fees Trade discounts Push money Advertising allowances

Freight absorption pricing

Texas Cable Corporation, sells heavy guage wire cable to construction companies around the country. Customers pay shipping from Texas Cable's warehouse in Dallas. Recently, a new competitor in Florida has been taking away some of Texas Cable's Southern customers. If Texas Cable wants to compete in these distant markets, but not increase the cost of its product to other customers, it would probably switch to Specifying "F.O.B. Dallas" in its contracts Uniform delivered pricing Freight absorption pricing Zone pricing None of the above would help Texas Cable Corporation with its problem

Demand decreases as price increases.

The "law of demand" is associated with: Demand curve in which demand increases as price increases. Demand decreases as price increases. Demand curves in which demand is only price elastic Demand curves in which demand is only price inelastic None of the above

All of the above

The AVC curve is typically 'u-shaped' because: Scale economies initially drive unit variable costs down as sales volume increase. The experience curve tends to drive unit variable costs down as producers become more knowledgeable of how to make products. Unit variable costs tend to increase after some level of output due to 'diseconomies of scale' All of the above None of the above

30%

The Gulfport Cycle Shop bought two motorcycles for a total of $2,000 and sold each one for $1,500. The markup percent(based on selling price)was closest to: 30% 43% 50% 53% 55%

leader pricing

The Wine Emporium features wines from all over the world. Along with its wines, the firm sells "The Complete Wine Guide" for $4.99. It sells this book at a price substantially below its regular retail price of $19.95 in order to attract wine shoppers to its store and increase its wine sales. This would be an example of: a single-price strategy leader pricing cost-plus pricing price lining penetration pricing

Competitive price range

The ____________ is defined as those prices bounded by customer demand at the high end and costs at the low end. Price floor Price ceiling Competitive price range Demand curve Optimal price

Market-skimming

The expected price for sunscreen is in the $4 to $6 price range. The introductory price for Shade UVA Guard by Schering-Plough was set high ($9.99) to recover its research and development costs. Schering-Plough was using a _____ strategy. Cost-plus Market-skimming Market-absorption Marginal cost Market-penetration

Managing price

The final step in the price setting process is __________. Setting price objectives Managing price Identifying price strategies Setting base price Adjusting base price with various discounts and allowances

Reduced ability to raise prices.

The likely consequences of firms choosing to engage in non-price competition include all of the following except __________. Reduced probability of price wars with other firms. Firms can differentiate based on product attributes and other elements of the marketing mix. Greater ability to build brand image and equity. Lower propensity for firms to collude with one another to maintain prices Reduced ability to raise prices.

All of the above are potential consequences.

The likely consequences of firms choosing to engage in price competition include all of the following except __________. Higher probability of price wars with other firms. Lower overall profits for firms in the industry. Higher levels of scrutiny by federal and state regulatory agencies. Greater tendency for firms to collude with one another to maintain prices All of the above are potential consequences.

11

The rent for a booth at the local flea market is $150 per month with a $15 charge for utilities. The variable cost per picture frame sold is $5. The selling price for each frame is $20. Calculate the break-even point in units. (round to the nearest unit). 10 11 12 13 14

High initial prices can keep demand from exceeding supply.

The strategy of market-skimming pricing is especially suited for new products because: Markets cannot be effectively segmented on an income basis. Price competition is typically most important in the introductory stage of the product life cycle. High initial prices can keep demand from exceeding supply. Profits are more important than recouping costs. All of the above are true.

$4.25

The total fixed costs for a manufacturer of road maps is $25,000, and its unit variable cost is $3. The company sells 20,000 maps and just breaks even. What is the map's selling price? (Select the closest answer). $3.75 $4.00 $4.25 $4.50 $4.75

Selling price minus the cost of the item, divided by the selling price--times 100.

The typical markup (expressed as a percent) is the: Selling price minus the cost of the item, divided by the cost of the item--times 100. Selling price of an item, divided by its cost--times 100. Selling price minus the cost of the item, divided by the selling price--times 100. Selling price minus the cost of the item, divided by the average fixed cost--times 100. Cost of an item divided by its selling price--times 100.

True

True or False: The term "price competition" in a marketing context means that firms have opted to employ price aggressively as a major component of their marketing program.

Prices must be set with a knowledge of the costs required to make and sell the product.

Understanding costs faced by the firm when making pricing decisions is important because: Costs constitute the maximum possible price that can be charged for a product. Prices can never be set lower than costs. Prices must be set with a knowledge of the costs required to make and sell the product. Prices are not related to costs Costs are directly proportional to prices charged by competitors

Value

Wendy's fast-food restaurant chain priced several of its more popular menu items at $.99 while raising the price of some of its upgraded meal deals. This pricing strategy is an example of _____ pricing because the chain is trying to improve the customer's perception of the ratio of benefits received to the product's price. Fair trade Value Psychological Cost-plus Penetration

Captive product pricing

When Nintendo sets a relatively low price on its game units to stimulate more demand for its game cartridges, it is using Prestige pricing Price lining Captive product pricing Bundled pricing Bait pricing

Market penetration

When Nintendo video games were introduced into the United States, they were priced at an introductory price of $299. This price was $100 lower than the Sega games. Nintendo probably used _____ a pricing strategy to quickly gain a large share of the market. Market-skimming Market absorption Market penetration Cost-plus Value-set

Non-price competition

When a seller attempts to employ promotion to shift the demand curve for its product to the right, such efforts represent: Price competition Economic diversification Market control Non-price competition Price fixing

The buyer gets a discount of 3 percent if the bill is paid within 10 days; otherwise the entire amount is due in 60 days.

When a seller offers a cash discount with terms of 3/10, n/60, this means: The buyer gets a discount of 10 percent if the bill is paid within 3 days; otherwise the entire amount is due in 60 days. Payment is due in 10 days, or else there is a 3 percent late-payment penalty. Payment is due in 60 days, or else there is a 3 percent late-payment penalty. The buyer gets a discount of 3 percent if the bill is paid within 10 days; otherwise the entire amount is due in 60 days. If the buyer pays within 60 days, there is a 3 percent discount; beyond that is a 10-day grace period before there is a penalty.

All of the above are part of the value equation.

When consumers assign "value" to products and services they take into account which of the following? The price of the product or service The benefits received from the product or service The emotional costs associated with obtaining the product or service The effort that must be expended in acquiring the product or service All of the above are part of the value equation.

Non-price competition

When firms seek to differentitate their product offerings by emphasizing different promotion techniques they are said to be employing ___________ . Price competition Monopolistic competition Non-price competition Promotion competition Competitive positioning

Variable costs of production

When production stops (i.e. no units produced), _________becomes zero. Variable costs of production Marginal costs Total costs Fixed production costs Total fixed costs

None of the above

When setting prices, the price floor is usually defined by ______ of producing and marketing the product. The total costs The total fixed costs The average variable costs The average total costs None of the above

Using historical ratios

Which method for estimating demand curves is least appropriate for the marketer of a new product. Using buy-response data Using historical ratios Using test market data Using managerial judgement

Defines the percent change in quantity demanded for every one percent change in price

Which of the following best defines the meaning of "e" - the coefficient of elasticity? Defines the change in total revenue for a given change in price. Defines the percent change in price for every one percent change in revenue. Defines the percent change in revenue for every one percent change in price Defines the percent change in quantity demanded for every one percent change in price None of the above

Consumers are more likely to be price inelastic

Which of the following is least associated with the concept of 'price competition?' There is a stronger likelihood of price wars occurring Governmental agencies are more likely to monitor and intervene in pricing activities Firms aggressively employ price as a part of the marketing mix Consumers are more likely to be price inelastic All of the above are unlikely

A large, highly price-elastic market exists for the product

Which of the following is least likely to be a condition necessary for employing a skimming pricing strategy? A large, highly price-elastic market exists for the product The product is protected by patents The product is associated with a high capital investment serving as a 'barrier to competitive entry' Strong brand preferences exist due to the product's unique characteristics Producer has control over a critical material needed for production of the product

The seller introduced several new products that were considered to be category extensions during the time in question.

Which of the following is least likely to cause problems when employing historical data to estimate demand curves? Competitors experimented with multiple price changes during the time frame under analysis. Price controls were imposed on the industry by the Federal government during the period in which the pricing data were collected. The seller made several major changes to its promotion program during the time in question. The seller introduced several new products that were considered to be category extensions during the time in question. A consumer rights advocacy group mounted a major campaign against the company and its products during the time under analysis.

Cost-based pricing techniques generally fail to account for consumer demand at the prices set with such techniques.

Which of the following is the major disadvantage of nearly all cost-based pricing methods? Costs are too difficult to determine for these pricing techniques to be truly effective. Cost-based pricing techniques generally fail to account for consumer demand at the prices set with such techniques. Most cost-based pricing techniques are technically too difficult to use in actual practice. Cost-based pricing techniques generally are only used by manufacturers because a manufacturer can more precisely pinpoint the exact fixed and variable costs associated with its products.

Periodic discounting

Which of the following pricing strategies would you suggest to a retailer that wishes to encourage price-sensitive shoppers to postpone their purchases until the planned time of the sale for those products the retailer intends to place on sale: Random discounting Second market discounting Periodic discounting Deep discounting None of the above

???

With respect to the coefficient of elasticity, a value of "e" equal to -1.5 means that: Demand changes by -1.5% for each 1% change in price For every 1% change in price, demand changes by -1.5 times that amount Demand is price elastic Demand and price are inversely related All of the above

Decline

With respect to the product life cycle, prices are usally lowest during the ___________ stage. Conceptualization Introduction Growth Maturity Decline

FOB mill pricing

With which geographic pricing strategy is the seller likely to have the lowest freight charge? Freight absorption pricing FOB mill pricing Uniform delivered pricing Geographic pricing Zone-delivered pricing

FOB plant pricing

Yesterday Delta Press in Dallas, Texas shipped 1,000 books to a retailer in Florida, 150 books to a retailer in Georgia, and 50 books to a buyer in Montana. However, Delta Press paid no freight charges. Which geographic pricing strategy did Delta use? Freight absorption pricing Uniform delivered pricing FOB plant pricing Zone-delivered pricing FOB destination pricing

Trade or functional discounts

_____ are reductions from the list price offered to middlemen in payment for marketing functions they will perform. Markdowns Cash discounts Quantity discounts Slotting fees Trade or functional discounts

Value

_______ is the ratio between the utility you receive from a product and the price you give up in exchange for that product. Price Value Exchange Utility Barter

Price

________ is variously called rent, tuition, interest, fee, toll, wage, commission, dues, salary, bribe, blackmail, and more. Price Value Exchange Utility Barter

Price

_________ is the only marketing mix element that generates revenue for the firm. Promotion Product Distribution Price

Price

__________ is a measure of the utility that exists or is perceived to exist in a product. Price Value Exchange Utility Barter

Price

__________ is the amount of money or other form of remuneration that is charged for products or services. Price Value Exchange Utility Barter

Promotion allowances

___________ are tactical pricing elements that are intended to aid supply chain members in promoting the firm's product at the retail level. Price objectives Pricing techniques Pricing discounts Promotion allowances Cost-volume-profit analysis

Pricing discounts

___________ are tactical pricing elements that typically reduce the computed base price of a product and help firms manage demand for the product. Price objectives Pricing techniques Pricing discounts Pricing allowances Cost-volume-profit analysis

Horizontal price fixing

___________ entails pricing agreements between two or more firms operating at the same supply chain level. Price discrimination Vertical price fixing Horizontal price fixing Price lining Price bundling