Price Strategy

What factors affect price?

• Costs and Expenses

• Supply and Demand

• Consumer Perceptions and Competition

• Government Regulations and Technological Trends

• All of the above

Fixed costs are subject to change depending on the units sold and variable costs are not subject to change depending on the units sold.

• True

• False

Pricing above the market is:

• Price Gouging

• Price Fixing

• Resale Price Maintenance

• Unit Pricing

• Bait and Switch

When competing companies agree to restrict prices it is:

• Price Gouging

• Price Fixing

• Resale Price Maintenance

• Unit Pricing

• Bait and Switch

Price fixing imposed on wholesaler or retailer to deter priced based competition is:

• Price Gouging

• Price Fixing

• Resale Price Maintenance

• Unit Pricing

• Bait and Switch

Required pricing of goods on the basis of cost per unit of measure in addition to price per item is:

• Price Gouging

• Price Fixing

• Resale Price Maintenance

• Unit Pricing

• Bait and Switch

Advertising a lower price and getting people to buy something else instead that is higher priced or lower quality is:

• Price Gouging

• Price Fixing

• Resale Price Maintenance

• Unit Pricing

• Bait and Switch

Pricing objectives include obtaining a target return on investment and obtaining market share.

• True

• False

Return on Investment (ROI) is

• the amount earned as a result of that investment

• ROI= (gain from investment - cost of investment) / cost of investment

• Both answers are true

• None of the answers are true

Customers pay different prices for the same type or amount of merchandise it is:

• Flexible Price Policy

• One Price Policy

• Price Skimming

• Penetration Pricing