The policy that assumes that demand is relatively inelastic over certain price ranges is called A)price lining. B)odd -even pricing. C)price skimming. D)prestige pricing. E)customary pricing.

The policy that assumes that demand is relatively inelastic over certain price ranges is
called
A)price lining.
B)odd-even pricing.
C)price skimming.
D)prestige pricing.
E)customary pricing.
by

1 Answer

Answer :

A)price lining.
by

Related questions

What type of pricing policy is used in a situation in which the demand for a product is price inelastic and the seller has an ethical responsibility not to overcharge the client? A)price lining B)prestige pricing C)professional pricing D)customary pricing E)ethical pricing

Description : What type of pricing policy is used in a situation in which the demand for a product is price inelastic and the seller has an ethical responsibility not to overcharge the client? A)price lining B)prestige pricing C)professional pricing D)customary pricing E)ethical pricing

Last Answer : C)professional pricing

When an organisation sets a limited number of prices for selected groups of merchandise, this idea is commonly referred to as A)prestige pricing. B)price lining. C)customary pricing. D)odd -even pricing. E)ethical pricing.

Description : When an organisation sets a limited number of prices for selected groups of merchandise, this idea is commonly referred to as A)prestige pricing. B)price lining. C)customary pricing. D)odd-even pricing. E)ethical pricing.

Last Answer : B)price lining.

When Sharp first introduced its line of reverse notation calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy used by Sharp is called: A)customary pricing. B)penetration pricing. C)price skimming. D)prestige pricing.

Description : When Sharp first introduced its line of reverse notation calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy used by Sharp is called: A)customary pricing. B)penetration pricing. C)price skimming. D)prestige pricing.

Last Answer : C)price skimming.

Management at Algo Electronics is having difficulty in raising the introductory price on system components to cover its increased costs. Apparently, Algo used a ________ pricing policy in pricing these components. A)odd-even B)skimming C)penetration D)psychological

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Last Answer : C)penetration

Which of the following would be used in setting the price of a new product if considerable competition is expected? A)Psychological pricing B)Penetration pricing C)Odd -even pricing D)Price skimming

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Last Answer : B)Penetration pricing

With what type of products would you expect demand to increase as price falls? A)Prestige products B)Products with elastic demand C)Products with inelastic demand D)Products with an inverted C -shaped demand curve

Description : With what type of products would you expect demand to increase as price falls? A)Prestige products B)Products with elastic demand C)Products with inelastic demand D)Products with an inverted shaped demand curve

Last Answer : D)Products with elastic demand

A penetration -pricing policy is particularly appropriate when demand is: A)increasing. B)highly elastic. C)highly inelastic. D)decreasing.

Description : A penetration-pricing policy is particularly appropriate when demand is: A)increasing. B)highly elastic. C)highly inelastic. D)decreasing.

Last Answer : B)highly elastic.

When marketers at The Honey Company tried to determine demand for their product, they found that at 50 pence, consumers wanted 2,000 jars; at £1.00, they wanted 6,000 jars; and at £1.50 they wanted 4,000 jars. What can the company conclude? A)Honey has a normal demand curve. B)It has an elastic product. C)It has an inelastic product. D)Honey is a prestige good.

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Last Answer : D)Honey is a prestige good.

Which of the following pricing methods is used most often by retailers? A)Markup pricing B)Price discrimination C)Price differentiation D)Return on investment E)Price skimming

Description : Which of the following pricing methods is used most often by retailers? A)Markup pricing B)Price discrimination C)Price differentiation D)Return on investment E)Price skimming

Last Answer : A)Markup pricing

To attract customers into stores, Spar advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called A)price lining. B)special-event pricing. C)experience curve pricing. D)superficial discounting. E)price leader pricing.

Description : To attract customers into stores, Spar advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called A)price lining. B)special-event pricing. C)experience curve pricing. D)superficial discounting. E)price leader pricing.

Last Answer : E)price leader pricing.

For custom -made equipment and commercial construction projects, which pricing method is most likely to be used? A)Prestige pricing B)Markup pricing C)Return -on -investment pricing D)Cost -plus pricing

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Last Answer : D)Cost-plus pricing

To maximize market share, a firm may use _____________ pricing, which is based on the theory that as sales volume increases, unit costs will decrease. A. Market-penetration B. Market-skimming C. Value pricing D. Demand pricing E. Price bands

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Last Answer : A. Market-penetration

When establishing prices, a marketer's first step is to A)determine demand. B)develop pricing objectives. C)select a pricing policy. D)evaluate competitors' prices. E)determine a pricing method.

Description : When establishing prices, a marketer's first step is to A)determine demand. B)develop pricing objectives. C)select a pricing policy. D)evaluate competitors' prices. E)determine a pricing method.

Last Answer : B)develop pricing objectives.

If a product has an inelastic demand and the manufacturer raises its price, A)total revenue will increase. B)quantity demanded will increase. C)the demand schedule will shift. D)the demand will become more inelastic. E)total revenue will decrease.

Description : If a product has an inelastic demand and the manufacturer raises its price, A)total revenue will increase. B)quantity demanded will increase. C)the demand schedule will shift. D)the demand will become more inelastic. E)total revenue will decrease.

Last Answer : A)total revenue will increase.

The demand for many industrial products for which a price increase or decrease will not significantly affect the demand is: A)elastic B)inelastic C)derived D)joint

Description : The demand for many industrial products for which a price increase or decrease will not significantly affect the demand is: A)elastic B)inelastic C)derived D)joint

Last Answer : B)inelastic

Competitors prices and the marketing mix variables that competitors emphasise partly determine: A)the selection of a pricing policy. B)the timing of the introduction of new products. C)whether to use a pioneer or psychological pricing policy. D)how important price will be to customers.

Description : Competitors prices and the marketing mix variables that competitors emphasise partly determine: A)the selection of a pricing policy. B)the timing of the introduction of new products. C)whether to use a pioneer or psychological pricing policy. D)how important price will be to customers.

Last Answer : D)how important price will be to customers.

)When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be - (1) Highly elastic (2) Inelastic (3) Relatively elastic (4) Perfectly inelastic

Description : )When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be - (1) Highly elastic (2) Inelastic (3) Relatively elastic (4) Perfectly inelastic

Last Answer : (2) Inelastic Explanation: When the percentage change in quantity demanded is less than the percentage change in price, then the demand for the commodity is said to be inelastic. Price elasticity of demand refers to the degree of responsiveness of quantity demanded to change in price.

When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be (1) Highly elastic (2) Inelastic (3) Relatively elastic (4) Perfectly inelastic

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Last Answer : Inelastic

Adam's Pool Service charges £50 for swimming pool cleaning performed prior to May 15 and £75 for jobs performed after that date. This pricing structure provides the benefits to Adam's of: A)price leaders. B)smoothing demand fluctuations. C)increasing service tangibility. D)tying prices to service costs.

Description : Adam's Pool Service charges £50 for swimming pool cleaning performed prior to May 15 and £75 for jobs performed after that date. This pricing structure provides the benefits to Adam's of: ... leaders. B)smoothing demand fluctuations. C)increasing service tangibility. D)tying prices to service costs.

Last Answer : B)smoothing demand fluctuations.

If Pepsi sets the price of its six pack to match exactly the price of Coca - Cola's, Pepsi is using a ------ pricing method. A)demand -oriented B)cost -oriented C)experience curve D)competition -oriented

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Which of the following statements about markup pricing is correct? A)The use of similar markups reduces price competition. B)Markup pricing is inconvenient to use. C)Markup pricing results in a high price when demand is high and a low price when demand is low. D)Using markups makes pricing a time -consuming, difficult process.

Description : Which of the following statements about markup pricing is correct? A)The use of similar markups reduces price competition. B)Markup pricing is inconvenient to use. C)Markup pricing results in a high ... low price when demand is low. D)Using markups makes pricing a time-consuming, difficult process.

Last Answer : A)The use of similar markups reduces price competition.

15) Adam's Pool Service charges £50 for swimming pool cleaning performed prior to May 15 and £75 for jobs performed after that date. This pricing structure provides the benefits to Adam's of: A)price leaders. B)smoothing demand fluctuations. C)increasing service tangibility. D)tying prices to service costs.

Description : 15) Adam's Pool Service charges £50 for swimming pool cleaning performed prior to May 15 and £75 for jobs performed after that date. This pricing structure provides the benefits to Adam's ... leaders. B)smoothing demand fluctuations. C)increasing service tangibility. D)tying prices to service costs.

Last Answer : B)smoothing demand fluctuations.

7) DuPont implemented an expensive advertising campaign for Stainmaster carpet because the firm understood that if it could sell more carpeting the mills would buy more of its chemicals. DuPont demonstrated an understanding that for industrial firms demand is often A)proportional. B)downward sloping. C)inelastic. D)derived. E)seasonal.

Description : 7) DuPont implemented an expensive advertising campaign for Stainmaster carpet because the firm understood that if it could sell more carpeting the mills would buy more of its chemicals. DuPont demonstrated ... demand is often A)proportional. B)downward sloping. C)inelastic. D)derived. E)seasonal.

Last Answer : D)derived.

The fact that organisational customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for industrial products is: A)joint B)economically stable C)derived D)inelastic E)more fluctuating

Description : The fact that organisational customers purchase products to be used directly or indirectly in the production of goods and services to satisfy customers' needs means that demand for industrial products is: A)joint B)economically stable C)derived D)inelastic E)more fluctuating

Last Answer : C)derived

Even though a firm may have stated list prices and discount structures, the customer may pay an even lower price through what type of pricing? A)Open bidding B)Administered pricing C)Sealed bidding D)Negotiated pricing

Description : Even though a firm may have stated list prices and discount structures, the customer may pay an even lower price through what type of pricing? A)Open bidding B)Administered pricing C)Sealed bidding D)Negotiated pricing

Last Answer : D)Negotiated pricing

As it places its order for truck tyres with Michelin, South Side Industrial Supply realises that it must also place an order for valve stems and balancing weights for the truck tyres. Here industrial products are characterised as having ____ demand. A)fluctuating B)inelastic C)derived D)joint

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Last Answer : D)joint

The technique of charging high price and high profits at the initial stage of marketing the product is called a) Skimming pricing b) Penetration pricing c) Mark-up pricing d) “What the traffic can bear” pricing

Description : The technique of charging high price and high profits at the initial stage of marketing the product is called a) Skimming pricing b) Penetration pricing c) Mark-up pricing d) “What the traffic can bear” pricing

Last Answer : a) Skimming pricing

The pricing method in which the selling price of the product is fixed by adding a margins to the cost price is called a) “All the traffic will Bear pricing” b) Skimming Price c) Penetration pricing d) Mark-Up pricing

Description : The pricing method in which the selling price of the product is fixed by adding a margins to the cost price is called a) “All the traffic will Bear pricing” b) Skimming Price c) Penetration pricing d) Mark-Up pricing

Last Answer : d) Mark-Up pricing

Tommy leaves the video rental shop annoyed about the small number of titles that were available for rent. His attitude is due to the actual number of tapes in the store and: A)his satisfaction with the service he received. B)the store's pricing policy. C)the number of people there to help. D)his service expectations. E)the average number of available titles at all stores.

Description : Tommy leaves the video rental shop annoyed about the small number of titles that were available for rent. His attitude is due to the actual number of tapes in the store and: A)his satisfaction with ... there to help. D)his service expectations. E)the average number of available titles at all stores.

Last Answer : D)his service expectations.

In market skimming pricing strategy 1. Initially price is lower and then it is increased 2. Initial price is high and is maintained high 3. Initial price is low and is maintained low 4. Initial price is higher and then it is reduced 5. None of these

Description : In market skimming pricing strategy 1. Initially price is lower and then it is increased 2. Initial price is high and is maintained high 3. Initial price is low and is maintained low 4. Initial price is higher and then it is reduced 5. None of these

Last Answer : Initial price is higher and then it is reduced

Following a hurricane, a tremendous demand for gas-powered generators occurs. Gotts Hardware holds a large stock of these items and it faces major ethical decisions with regard to the ------ issue. A) product B) advertising C) personal selling D) publicity E) pricing

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Last Answer : E) pricing

A horizontal demand curve is - (1) relatively elastic (2) perfectly inelastic (3) perfectly elastic (4) of unitary elasticity

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Last Answer : a. the law of increasing marginal cost

The upper portion of the kinked demand curve is relatively A.More inelastic B.More elastic C.Less elastic D.Inelastic

Description : The upper portion of the kinked demand curve is relatively A.More inelastic B.More elastic C.Less elastic D.Inelastic

Last Answer : B.More elastic

If the consumption of a product can be postponed for the time being (a) The demand for the product will be inelastic (b) The demand for the product will be relatively elastic (c) The demand for the product will be perfectly elastic (d) The demand for the product will be perfectly inelastic

Description : If the consumption of a product can be postponed for the time being (a) The demand for the product will be inelastic (b) The demand for the product will be relatively elastic (c) The demand for the product will be perfectly elastic (d) The demand for the product will be perfectly inelastic

Last Answer : (b) The demand for the product will be relatively elastic 

Delta Airlines prices its tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel. This illustrates ________ pricing. A)seasonal B)demand -oriented C)competitive D)markup

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Last Answer : B)demand-oriented

If Wrigley sets its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective? A)A statement of demand elasticities B)An identification of cost structure C)A breakeven analysis D)Identification of a time period for accomplishment

Description : If Wrigley sets its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective? A)A statement of demand ... An identification of cost structure C)A breakeven analysis D)Identification of a time period for accomplishment

Last Answer : D)Identification of a time period for accomplishment

At a local trade show a purchaser of office equipment discussed the price of a computer work station with a representative of Haworth office furnishings. As a result of the discussion the buyer purchased a suitable work station at a lower price than the stated list price. This type of industrial pricing is called: A)transfer. B)open bid. C)solicited D)petitioned E)open

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Last Answer : D)petitioned

Suppose the frozen foods division of Unilever purchases food trays and boxes from the organisation's packaging division. The form of pricing used to charge the frozen foods division is called: A)zone pricing. B)base -point pricing. C)business -unit pricing. D)transfer pricing. E)price discrimination.

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Last Answer : D)transfer pricing

Kinetic theory of gases assumes that the collisions between the molecules are  (a) perfectly elastic  (b) perfectly inelastic  (c) partly elastic  (d) partly inelastic  (e) partly elastic and partly inelastic.

Description : Kinetic theory of gases assumes that the collisions between the molecules are  (a) perfectly elastic  (b) perfectly inelastic  (c) partly elastic  (d) partly inelastic  (e) partly elastic and partly inelastic.

Last Answer : Answer : a

In the absence of __________, pricing remains a flexible and convenient way to adjust the marketing mix. A) experience -curve effects B) strong price competition C) weak price competition D) government price control E) low -priced substitute products

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Last Answer : D) government price control

If a pint of Guinness costs less in Belfast than in Edinburgh this would reflect which of the following pricing methods? A)Price differentiationB)Base -point pricing C)Freight absorption pricing D)Transfer pricing E)Zone pricing

Description : If a pint of Guinness costs less in Belfast than in Edinburgh this would reflect which of the following pricing methods? A)Price differentiationB)Base-point pricing C)Freight absorption pricing D)Transfer pricing E)Zone pricing

Last Answer : E)Zone pricing

When a company adjusts price levels so that it can increase sales volume to levels that match the organisation's expenses, it is said to employ a ---- pricing objective. A)market share B)cash flow C)return on investment D)survival E)profit

Description : When a company adjusts price levels so that it can increase sales volume to levels that match the organisation's expenses, it is said to employ a ---- pricing objective. A)market share B)cash flow C)return on investment D)survival E)profit

Last Answer : D)survival

Which pricing objective de -emphasises price and can lead to a climate of nonprice competition in an industry? A)Status quo B)Return on investment C)Market share D)Survival E)Cash flow

Description : Which pricing objective de -emphasises price and can lead to a climate of nonprice competition in an industry? A)Status quo B)Return on investment C)Market share D)Survival E)Cash flow

Last Answer : A)Status quo

Delta Air Lines wishes to purchase five new aeroplanes. Management seeks information from several aircraft manufacturers, screens the offers, and discusses price and terms of sale with the preferred company until a transaction is completed. This method of pricing is: A)administered. B)sealed bid. C)open bid. D)negotiated.

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Last Answer : D)negotiated.

When Fred Middleton asks the Cannon salesperson how much a desktop bond copier is going for these days, the salesperson looks in his price book and quotes Fred the firm's published price for the unit. In this instance, Cannon is using which type of pricing? A)Open bid B)Sealed bid C)Administered D)Negotiated

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Last Answer : C)Administered

The system in which an industrial seller sets a price for a product and the customer pays that price is known as -------- pricing. A)bid B)negotiated C)administered D)fixed

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Last Answer : C)administered

------ pricing is possible when a firm is able to reduce its manufacturing costs at a predictable rate through improved methods, materials, skills, and machinery. A)experience -curve B)price leader C)manufacturing based D)production -curve

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Last Answer : A)experience-curve

Charging more for a soft drink in a vending machine than in a supermarket is an example of: A)price discrimination. B)competition oriented pricing. C)price differentiation. D)cost -oriented pricing.

Description : Charging more for a soft drink in a vending machine than in a supermarket is an example of: A)price discrimination. B)competition oriented pricing. C)price differentiation. D)cost-oriented pricing.

Last Answer : C)price differentiation

Which pricing strategy involves a company fixing a low price that high -cost competitors cannot match? A)Penetration pricing B)Cost -orientated pricing C)Psychological pricing D)Experience curve pricing

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Last Answer : A)Penetration pricin