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14 Cards in this Set
- Front
- Back
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When a company adjusts price levels so that it can increase sales volume to levels that match the organization's expenses, it is said to employ a _________ objective.
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survival
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Westin Inc. has an objective of achieving a 25 percent return from its overall sales. This is an example of a ______ pricing objective.
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profit
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A firm establishes which of the following pricing objectives to maintain or increase its product's sales in relation to total industry sales?
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Market share
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What type of pricing objective would an organization use if it were in a favorable position and desired nothing more?
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Status quo
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The three primary bases for developing prices are
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demand, competition, and cost.
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When a seller's costs are usually determined during or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price, an organization is using _____ pricing.
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cost-plus
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A cost-based pricing method commonly used in retail is called
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markup pricing.
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Price skimming and penetration pricing are both strategies used for
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new-product pricing.
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When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called
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price skimming.
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If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use
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penetration pricing.
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Which of the following would be used in setting the price of a new product if considerable competition is expected?
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Penetration pricing
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The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called
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price lining.
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When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of
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bundle pricing.
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Odd-even pricing is
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a psychological pricing strategy.
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