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Pricing Strategies Flashcards | StudBud
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Pricing Strategies
Pricing Strategies
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Flashcards
20 cards
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Questions
20
Answers
1
Operating expenses include...
Buildings
Utilities
Taxes
Equipment
2
Price lines:distinct categories of prices based on differences in product quality and features
False
True
3
The demand for steak is...
Elastic
Inelastic
4
A large supply of a product exists and demand is low
Surplus
Inelastic
Shortage
Minimum
5
All customers pay the same price. No negotiating the product's price.
Physiological Pricing
Penetration pricing
One-Price policy
Psychological Pricing
6
Prices are reduced for a short time, such as a holiday
Price skimming
Bargain
Special event pricing
Flexible pricing
7
An increase in the tax on a product makes it...
More profitable
Unethical
More attractive to consumers
Less attractive to consumers
8
High taxes on alcohol products are designed to encourage the use
False
True
9
How long are patents granted to inventors for?
100 years
20 years
15 years
200 years
10
Setting higher than average prices to suggest status
Fixed cost
Minimum price
Prestige pricing
Quantity discounts
11
Offered to customers who buy during times when normal sales are low
Seasonal discounts
Price skimming
Quantity discounts
Effective discounts
12
In order to set an ineffective price, max. and min. prices for the product must be determined
True
False
13
All are common pricing strategies EXCEPT...
Flexible Pricing
Unethical Pricing
Loss-Leader Pricing
Prestige Pricing
14
The difference between the cost and selling price
Markdown
Gross margin
Break even point
Profit
15
A change in price will result in a significant change in demand
Elastic demand
Demand
Elaborate demand
Inelastic demand
16
A reduction from the original selling price
Sales tax
Markdown
Markup
Markround
17
Odd numbers convey a prestigious image
True
False
18
Insulin for a diabetic is NOT a necessity and does have a substitute
True
False
19
The practice of combining several related services for one price
Price Prestige
Price lines
Price skimming
Price bundling
20
Some pricing strategies are unethical and can be illegal which can result in fines
True
Taxes
False
