Quiz 8
Kriste and David are shopping for a new television set. They research two different, well-known brands and conclude the following. (Their ratings and importance weights are measured on 1-10 scales, as used in class.) the Toshiba TV costs $100, what is the parity price of the Sony TV? (Round upward to the nearest dollar.)
$102.00
Macy's sells Liz Claiborne silver watches for $200.00 each. Macy's buys the watches from a regional distributor, and uses markup pricing , with a markup of 60 % , and the distributor takes a 25 % markup. What price does Liz Claiborne charge the distributor?
$60.00
Gucci is known for its stylish designer handbags. One of its more popular styles over the years has been a medium-sized black leather handbag that typically sells for $900. Gucci decides to boost sales by lowering the retail price to $600. After doing so, sales of the handbag actually decrease. Gucci's previous success could be attributed to which pricing concept?
. Prestige Pricing
Emily recently decided that she wanted to purchase a new Dell Laptop for the upcoming semester. After speaking to many people about computers over the past few years, she had a good idea about what kind of processor and how much memory she wanted. She believed that the laptop would cost around $900.00. After building her computer online at www.Dell.com, she was surprised to learn that her computer normally would cost $1500.00. However, if she agrees to buy it today, Dell will sell it her $1200.00. What is occurring in the passage? I external reference price Il sticker shock Ill internal reference price IV participative bargaining
I, II, and Ill only
The fashion buyer for Neiman Marcus is in Italy to view the new collections and to order for the coming season. In Milan, she negotiates a good price for a quantity of shoes in a range of sizes and styles, FOB factory. This means that:
Neiman Marcus selects the mode of transportation, pays freight charges, and is responsible for any damage while the shoes are in transit because title passed to the buyer at the point of loading.
Toyota introduced a new mid-sized SUV, which it priced at $30,000. However, many customers did not want to buy this new model because many competitors were offering a similar car for $27,000. Therefore, Toyota informed its prospective customers that in addition to the equivalent cost of the car, they were also receiving services above that of the competition. Toyota's care service is valued at $4,000 and the extended warranty is valued at $2,000. Therefore, when buying the Toyota SUV for $30,000, the customers are actually receiving a discount of $3,000. This technique is known as
Unbundling price
Creative marketers engage in value-pricing, the practice simultaneously______ and maintaining or decreasing price.
increasing product and service benefits
Which process determines whether total revenue from the sale of an additional unit of product exceeds the cost of producing and marketing that unit?
marginal analysis
From a marketing viewpoint , price is exchanged for the ownership or use of a good or service.
money or other considerations (including other goods and services)
Most consumers realize the quality of diamonds varies, and most believe the higher the price of the diamond the higher its quality. This is an example of price influencing the perception of overall quality, and _______to consumers.
value