MARKETING - CH. 19 PRICING CONCEPTS

Question 1

It represents a company’s product sales as a percentage of total sales for that industry

Accepted Answer

Market share

Question 2

Searches the web for the best prices for a particular item that one wishes to purchase

Accepted Answer

Shopping bots

Question 3

Payments made to dealers for promoting the manufacturer’s products

Accepted Answer

Promotional allowances

Question 4

Situation in which consumer demand is sensitive to changes in price

Accepted Answer

Elastic demand

Question 5

Discounts offered when a customer buys multiple units or above a specified dollar amount

Accepted Answer

Quantity discount

Question 6

Cost of the product plus amounts for profit and expenses not otherwise accounted for

Accepted Answer

Markup Pricing

Question 7

Quantity of a product that will be sold in the market at various prices for a specified period.

Accepted Answer

Demand

Question 8

It uses complex mathematical software to profitably fill unused capacity

Accepted Answer

Yield management system

Question 9

Charging a very low price with intention to drive competitors out of business or market

Accepted Answer

Predatory pricing

Question 10

Firm charges an introductory relatively low price for a product to reach the mass market

Accepted Answer

Penetration pricing

Question 11

A price skimming strategy is successful when...

Accepted Answer

Product legally well protected

Question 12

Quantity of a product offered by a manufacturer at various prices for a specified period

Accepted Answer

Supply

Question 13

Tries to get consumers into a store through false or misleading price advertising

Accepted Answer

Bait pricing

Question 14

It seeks to maintain existing prices or to meet the competition’s prices.

Accepted Answer

Status Quo pricing

Question 15

During this stage prices set high to recover development costs. Demand relatively inelastic.

Accepted Answer

Introductory stage

Question 16

Firm charges a high introductory price coupled with heavy promotion

Accepted Answer

Skimming Strategy

Question 17

Discounts offered when channel intermediaries perform a service for the manufacturer

Accepted Answer

Functional discounts

Question 18

Charging a price identical to or very close to the competition’s price

Accepted Answer

Status quo pricing strategy

Question 19

Which of the following factors does not Affect Elasticity of Demand

Accepted Answer

Product design

Question 20

Although it aims at setting prices for a large total revenue, does not always mean high prices

Accepted Answer

Profit maximization

Question 21

Cost that varies with changes in the level of output

Accepted Answer

Variable cost

Question 22

Determines what sales volume must be reached before total revenue equals total costs

Accepted Answer

Break-Even Analysis

Question 23

Price charged to customers multiplied by the number of units sold

Accepted Answer

Revenue

MARKETING - CH. 19 PRICING CONCEPTS

Questions 23

MARKETING - CH. 19 PRICING CONCEPTS

Questions 23