Pricing Strategies and Concepts

Which of the following is NOT a goal of pricing?

• Increasing market share

• Increasing business from competitors

• Making a return on investment

• Meeting competition

A basic published or advertised price, often subject to discount, describes which of the following?

• list price

• seasonal discount

• sale price

• cash discount

The idea of prestige pricing suggests which of the following?

• A higher price suggests higher quality

• Only rich people will buy higher priced items

• People will always pay more to get a name brand product

• Prices are higher to disguise standard products as higher quality products

When do companies begin to make a profit?

• When profit margins decline

• When supply and demand are at equillbrium

• When consumers begin purchasing products

• When the break even point is reached

What is an example of a company passing the cost on to the customer in regards to declining profit margins?

• Oil

• Hotels

• Taxis

• Makeup

How many steps are there to determine price?

• 5

• 6

• 7

• 8

Which of the following can companies do in the case of declining profit margins INSTEAD of passing the extra cost to the consumer?

• Companies must always pass the extra cost to customers

• Reduce the size of the product and increase the price

• Reduce the size of the product and decrease the price

• Reduce the size of the product instead of increasing the price

What are seasonal discounts?

• Discounts offered to encourage buyers to buy in bulk

• Discounts offered to encourage buyers to buy earlier than what current demands require

• Discounts offered to encourage buyers to pay a price more quickly

• Discounts offered temporarily to encourage immediate buying

What is a change in price that will affect the demand?

Which of the following is an example of odd-even pricing?

• $105

• $110.00

• $119.99

• $120