Question 1

Identify and briefly describe the legal constraints placed on pricing.

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Question 2

Identify and discuss the major categories of pricing objectives used by for-profit organizations.

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Question 3

Discuss the benefits of modified breakeven analysis.

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Question 4

Explain market-share objectives.

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Question 5

Explain the concept of value pricing.

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Question 6

What are the major weaknesses of traditional breakeven analysis?

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Question 7

Match each item with the correct statement below.
-A pricing strategy that allows marketers to vary prices based on such factors as demand,even though the cost of providing those goods or services remains the same,is known as _____.
A)breakeven analysis
B)tariffs
C)unfair-trade laws
D)incremental-cost pricing
E)profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition

Accepted Answer

Yield management is a pricing strategy that allows marketers to vary prices based on factors such as demand, even though the cost of providing goods or services remains the same. This is often used in industries such as airlines and hotels, where prices fluctuate based on factors such as time of day or season.

Question 8

Explain customary prices.

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Question 9

Define price.Explain why setting prices can be a difficult process.

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Question 10

List the four types of market structures based on the economic theory,and provide an example of an industry or business for each of the four types.

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Question 11

What are some of the organizational goals that pricing strategies can help not-for-profit organizations achieve?

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Question 12

What are the practical problems involved in applying price theory concepts to actual pricing decision?

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Question 13

Discuss cost-plus pricing.

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Question 14

Explain the two most common cost-oriented pricing procedures: full-cost and incremental-cost.

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Question 15

Assume that the per unit price of a product is $100,total fixed costs are $50,000,and variable costs are $70 per unit.Find the breakeven point (in both units and dollars).

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Question 16

Explain the concept of elasticity of demand.

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Question 17

Explain target-return objectives.

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Question 18

Describe the significance of yield management.

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Question 19

Describe the significance of tariffs in the global market place.

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Question 20

Explain the concept of marginal analysis.

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Quiz 18: Pricing Concepts