H GRADE A Q&A
Steinway produces concert grand pianos, often using the custom materials and designs
desired by a specific customer. The average price of these pianos runs about $50,000
depending on the exact piano. What type of pricing does Steinway most likely use for
these pianos? - (correct answer)cost-plus
Kroger grocery store often uses ______ pricing to encourage customers to purchase
more units of a single product and take advantage of lower, per-unit prices. Thus,
customers save money when purchasing multiple items of the same product at one time
versus buying only one item at different points in time. - (correct answer)multiple-unit
Marketers that evaluate competitors' prices do so to set their own prices slightly below
those of competitors. - (correct answer)False
_______ pricing, which is typically used by retailers such as Best Buy, calculates the
retail price by adding a predetermined percentage of the cost to the cost of the product.
- (correct answer)Markup
A company that utilizes _______ pricing may choose to set their prices below
competitors' prices or at the same level. - (correct answer)competition-based
Which of the following best explains consumers' motivations to respond positively to
bundle pricing? - (correct answer)Consumers appreciate the opportunity to save time
related to shopping and enjoy increased convenience.
Walgreens offers a variety of over-the-counter medication for allergies, colds, and flu
symptoms such as Zyrtec, Tylenol Cold & Flu, and Robitussin cough syrup. The store
has a private label brand and typically places the private label or store brand right next
to the major brand of the same product and prominently displays the product's price with
a shelf tag. Walgreens believes this approach will result in a great proportion of sales for
its private label brand that produces higher profit margins for the store and is using a
_____ pricing approach. - (correct answer)reference
, The _____ pricing objective is often utilized to encourage rapid sales and recover cash
as quickly as possible. - (correct answer)cash flow
A pricing strategy should yield a certain price or range of prices, which is the final step in
the pricing process. - (correct answer)True
Airlines will often change prices depending upon day of the week, time of day, and
number of days before the flight. It is quite common that a person sitting next to you on
a flight paid a much different price than you did. What type of pricing strategy are the
airlines most likely using? - (correct answer)dynamic pricing
Stephen King is the owner of a 100-seat capacity restaurant in a mid-sized city and has
significant restaurant experience but often struggles with decisions about pricing. Over
the years however, he's developed a simple method where he applies a straight 35% to
the cost of an item as his retail price. Stephen always knows the various cost elements
of his entrees, side dishes, and beverages and simply multiplies the 35% times the cost
to arrive at the final price to charge guests. What type of pricing is Stephen utilizing? -
(correct answer)markup pricing
AutoZone recently placed a newspaper and Facebook advertisement for a sale on tires
that included the statement "up to 40 percent off" on certain brands such as Pirelli,
Michelin, and Yokohoma. This added statement is an example of _______ pricing. -
(correct answer)tensile
Pricing a product at a moderate level and physically positioning it next to a more
expensive model or brand in the hope that the customer will use the higher price as a
comparison is known as ______. - (correct answer)reference pricing
Yield management is a strategy of maximizing revenues by making numerous changes
in response to demand, competitors' prices, or environmental conditions. - (correct
answer)True
Steinway produces concert grand pianos, often using the custom materials and designs
desired by a specific customer. The average price of these pianos runs about $50,000
depending on the exact piano. What type of pricing does Steinway most likely use for
these pianos? - (correct answer)cost-plus
Kroger grocery store often uses ______ pricing to encourage customers to purchase
more units of a single product and take advantage of lower, per-unit prices. Thus,
customers save money when purchasing multiple items of the same product at one time
versus buying only one item at different points in time. - (correct answer)multiple-unit
Marketers that evaluate competitors' prices do so to set their own prices slightly below
those of competitors. - (correct answer)False
_______ pricing, which is typically used by retailers such as Best Buy, calculates the
retail price by adding a predetermined percentage of the cost to the cost of the product.
- (correct answer)Markup
A company that utilizes _______ pricing may choose to set their prices below
competitors' prices or at the same level. - (correct answer)competition-based
Which of the following best explains consumers' motivations to respond positively to
bundle pricing? - (correct answer)Consumers appreciate the opportunity to save time
related to shopping and enjoy increased convenience.
Walgreens offers a variety of over-the-counter medication for allergies, colds, and flu
symptoms such as Zyrtec, Tylenol Cold & Flu, and Robitussin cough syrup. The store
has a private label brand and typically places the private label or store brand right next
to the major brand of the same product and prominently displays the product's price with
a shelf tag. Walgreens believes this approach will result in a great proportion of sales for
its private label brand that produces higher profit margins for the store and is using a
_____ pricing approach. - (correct answer)reference
, The _____ pricing objective is often utilized to encourage rapid sales and recover cash
as quickly as possible. - (correct answer)cash flow
A pricing strategy should yield a certain price or range of prices, which is the final step in
the pricing process. - (correct answer)True
Airlines will often change prices depending upon day of the week, time of day, and
number of days before the flight. It is quite common that a person sitting next to you on
a flight paid a much different price than you did. What type of pricing strategy are the
airlines most likely using? - (correct answer)dynamic pricing
Stephen King is the owner of a 100-seat capacity restaurant in a mid-sized city and has
significant restaurant experience but often struggles with decisions about pricing. Over
the years however, he's developed a simple method where he applies a straight 35% to
the cost of an item as his retail price. Stephen always knows the various cost elements
of his entrees, side dishes, and beverages and simply multiplies the 35% times the cost
to arrive at the final price to charge guests. What type of pricing is Stephen utilizing? -
(correct answer)markup pricing
AutoZone recently placed a newspaper and Facebook advertisement for a sale on tires
that included the statement "up to 40 percent off" on certain brands such as Pirelli,
Michelin, and Yokohoma. This added statement is an example of _______ pricing. -
(correct answer)tensile
Pricing a product at a moderate level and physically positioning it next to a more
expensive model or brand in the hope that the customer will use the higher price as a
comparison is known as ______. - (correct answer)reference pricing
Yield management is a strategy of maximizing revenues by making numerous changes
in response to demand, competitors' prices, or environmental conditions. - (correct
answer)True
