Question 1

When is skimming pricing an effective strategy?

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Question 2

Explain why odd-even pricing may be successful.

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Question 3

The price-setting process includes identifying pricing objectives and constraints. Describe the reasons these objectives may change and give examples of objectives a firm may set.

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Question 4

What is the difference between a movement along a demand curve and a shift of a demand curve?

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Question 5

Give an example of yield management pricing and explain why it is used.

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Question 6

What is loss-leader pricing and why do retailers use it?

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Question 7

Describe a profit objective used by many Japanese manufacturing firms.

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Question 8

What is standard markup pricing and when would it be used?

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Question 9

Describe the pricing constraints a firm is likely to face.

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Question 10

What are the conditions favoring the use of penetration pricing?

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Question 11

Explain predatory pricing.

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Question 12

There are factors other than price that affect demand. What are they and how do they work?

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Question 13

Marketing managers often use break-even analysis to analyze the relationship between total revenue and total cost to determine profitability at various levels of output. What is the break-even formula? Use the formula to calculate how many DVD players a dealer must sell if her fixed costs are $100,000, unit variable costs are $150, and the selling price is $200.

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Question 14

What is the difference between fixed costs and variable costs?

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Question 15

Price elasticity of demand measures how sensitive consumer demand and the firm's revenues are to changes in the product's price. Explain the difference between a product with elastic demand and a product with inelastic demand.

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Question 16

Distinguish between elastic demand and inelastic demand.

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Question 17

What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?

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Question 18

What is bait and switch? Give an example of it.

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Question 19

Explain why price elasticity is important to marketing managers.

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Question 20

List four key factors used to estimate demand.

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Quiz 11: Pricing Products and Services