Pricing Concepts (W11)

Which term refers to that which is given up in an exchange to acquire a good or service?

• Revenue
• Profit
• Price
• Cost

Revenue is calculated as:

• Expenses minus profit
• Price times units sold
• Total costs plus expenses
• Profit minus costs

Which pricing objective maintains existing prices or meets the competition’s prices?

• Profit maximization
• Status quo pricing
• Sales maximization
• Target ROI

Consumers’ responsiveness to price changes is called:

• Elasticity of demand
• Supply
• Profitability
• Break-even analysis

The ability to change prices quickly in real time using software is called:

• Markup pricing
• Dynamic pricing
• Penetration pricing
• Keystoning

A cost that does not change as output changes is called:

• Variable cost
• Fixed cost
• Markup cost
• Marginal cost

The practice of marking up prices by 100 percent (doubling the cost) is called:

• Price skimming
• Penetration pricing
• Keystoning
• Break-even pricing

Which analysis determines the sales volume needed before total revenue equals total costs?

• Elasticity analysis
• Cross-tabulation
• Break-even analysis
• Regression analysis

Which pricing policy sets a relatively low price to reach the mass market?

• Penetration pricing
• Price skimming
• Dynamic pricing
• Status quo pricing

Which pricing tactic involves selling a product near or below cost to attract shoppers?

• Leader pricing
• Bait pricing
• Odd-even pricing
• Price lining