QUESTION In this kind of pricing, a company starts with the price it wants to charge, figures out the profit margin it wants, then determines what the costs must be to produce the product to meet the desired price and profit goals. A) discounting B) target costing C) bundling D) everyday low pricing E) penetration […]
Date: September 3rd, 2020
QUESTION Which alternative pricing strategy works best with unsought products? A) psychological pricing B) bundling C) discounting D) price skimming E) penetration pricing ANSWER Answer: D Explanation: D) Unsought goods and services are those that people have little interest in, are unaware of, or didn’t think they needed. Price skimming is setting a high […]
Date: September 3rd, 2020
QUESTION Which of the following is an example of price skimming? A) Gourmet Pizza shop sells special-topping pizzas for $15.99. B) Walmart sells all products at a low price every day. C) When Macy’s introduces new clothing every season, it starts out selling the items at a high price. After a few weeks, the store […]
Date: September 3rd, 2020
QUESTION What is price skimming? A) In this strategy, the cost of producing or buying the product—plus making a profit—is the primary basis for setting price. B) In this strategy, price is determined in relation to rivals, factoring in other considerations such as market dominance, number of competitors, and customer loyalty. C) This strategy is […]
Date: September 3rd, 2020
QUESTION What is competitive pricing? A) Price is determined in relation to rivals, factoring in other considerations such as market dominance, number of competitors, and customer loyalty. B) A company sets a high price to make a large profit; this can work when there is little competition. C) A company sets a low price to […]
Date: September 3rd, 2020
QUESTION An athletic equipment company wants to make a new exercise bicycle with a speedometer, an odometer, a heart-rate monitor, and a small television. Which of the following describes target costing of that bicycle? A) The company will find out how many similar products already exist and the price of those products. The company will […]
Date: September 3rd, 2020
QUESTION Which pricing strategy is likely to work best with specialty items? A) price skimming B) penetration pricing C) discounting D) everyday low pricing E) bundling ANSWER Answer: A Explanation: A) Price skimming is setting a high price to make a large profit; it can work when there is little competition. Specialty goods and […]
Date: September 3rd, 2020
QUESTION Which of the following is an example of discounting? A) An appliance store offers each of its products at its own price and also offers a lower price if you buy two or more, such as a washer and a dryer, a stove and a refrigerator, a dishwasher and a trash compactor, and so […]
Date: September 3rd, 2020
QUESTION This strategy involves assigning regular prices to products but then resorting to frequent price-cutting strategies, such as special sales, to undercut the prices of competitors. A) psychological pricing B) bundling C) penetration pricing D) cost pricing E) discounting ANSWER Answer: E Explanation: E) Discounting, or high-low pricing, is assigning regular prices to products […]
Date: September 3rd, 2020
QUESTION What is setting a low price to attract many customers and deter competition called? A) target costing B) price skimming C) penetration pricing D) bundling E) psychological pricing ANSWER Answer: C Explanation: C) Penetration pricing is setting a low price to attract many customers and deter competition.
Date: September 3rd, 2020
