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WorksheetsTopic 8
Total questions: 12
Worksheet time: 16mins
________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing.
Value-based pricing
Target return pricing
Price elasticity
Product image
Each of the following economic factors can have a strong impact on a firm's pricing strategy EXCEPT ________.
an economic boom
the reseller's reaction to price changes
an economic recession
inflation
The New Age Gallery has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________.
time-based pricing
location pricing
customer-segment pricing
generational pricing
What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?
segmented pricing
psychological pricing
promotional pricing
dynamic pricing
The Internet offers ________, where the price can easily be adjusted to meet changes in demand.
captive pricing
dynamic pricing
price bundling
cost-plus pricing
Find the cost per unit of product A if:
fixed cost= $10,000.00
variable cost=$10 per unit
expected production units=100,000.
$10.10
$101.00
$1001.00
What is price skimming?
An initially high price charged to customer which will reduce over time
An initially low price charged to customer which will increase over time
A steady price charged to customer regardless of product age
Which pricing strategy involves setting prices based on the costs for producing, distributing and selling the product plus a fair rate of return for its effort and risk?
Customer Value-Based Pricing
Competition-Based Pricing
Cost-Based Pricing
Dynamic Pricing
________ involves charging a constant, everyday low price with few or no temporary price discounts.
High-low pricing
Target pricing
Cost-plus pricing
Every day low pricing
________ involves attaching features and services to differentiate a company's offers and to support charging higher prices.
Break-even pricing
Target pricing
Value-added pricing
Cost-plus pricing
Rent, electricity and executive salaries are examples of ________.
fixed costs
variable costs
accumulated costs
total costs
Suppose a manufacturer of water bottle has a cost of $17/unit. Calculate the price if the manufacturer wants to earn a 35 percent markup on sales.
