QUESTION Which of the following represents the pricing goal of making a profit? A) aiming for an 18 percent return on investment on the sale of milk B) lowering the price of milk to match the store across the street C) advertising milk as a loss leader to increase market share D) selling milk at […]
Date: September 3rd, 2020
QUESTION Which of the following is the best example of psychological pricing? A) The local university charges $16,000 for one student for one year of education. B) Howard has set the price of his luxury RV at $319,000. C) Eugene wants $350.00 for his heavy-duty chainsaw. D) Dominic has set the price of his specialty […]
Date: September 3rd, 2020
QUESTION What is the formula for computing the break-even point? A) break-even point = fixed cost / (variable cost of 1 unit – price of 1 unit) B) break-even point = fixed cost / (price of 1 unit – variable cost of 1 unit) C) break-even point = fixed cost / (price of 1 unit […]
Date: September 3rd, 2020
QUESTION Which kind of products do the six alternative pricing strategies best apply to? A) convenience B) shopping C) specialty D) unsought E) business ANSWER Answer: B Explanation: B) Shopping goods and services are more expensive products that people buy after comparing for value, price, quality, and style. The six alternative pricing strategies are […]
Date: September 3rd, 2020
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
