MKT Test 3 (Part Five)

If Norwegian Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Norwegian's demand would be ________________________________.

elastic

For most products, a(n) _______________________________ relationship exists between the price of a particular product and the quantity demanded.

inverse

Dunlop managers notice that when the number of tires the company sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's __________________________________________.

marginal revenue

Adidas is establishing a ____________________________ pricing objective to maintain or increase its product's sales in relation to total industry sales.

market share

Food King grocery stores offer candy bars in the checkout lanes for $0.99 rather than $1.00. This use of ____________________ pricing should help increase sales of the candy bars

odd number

If Acer uses ______________________________ pricing for its newest Chromebook, it is probably most interested in obtaining market share; and it is assuming

penetration

A problem associated with ___________________________________ is that consumers can predict when prices will be lowered and delay purchases until that time.

periodic discounting

A product that has more features than those of its competition, or that is perceived to be of higher quality, warrants using a(n) _________________________________________ pricing strategy.

premium

A measure of sensitivity of demand in relation to changes in price is ______________________.

price elasticity of demand

Executives in Japan decided to price Lexus luxury cars in the United States at $55,000 while pricing them at $66,000 in their own country. This is an example of ________________________.

secondly-market; pricing periodic discounting