3.03 Pricing Strategies Part 1 Question Preview (ID: 25703)
3.03 Pricing Strategies Part 1.
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Which of the following is the least important factor when selecting a pricing strategy
a) Promotional strategy
b) Competitor prices
c) Cost of merchandise
d) Location of store
A professional football team that increases ticket prices for next season because the team is on a winning streak is selecting a pricing strategy based on
a) previous winning potential.
b) the number of games played.
c) what the market will bear.
d) the location of the target market.
. If your goal is to avoid storing or discarding merchandise, what pricing strategy should you select?
a) Competitive
b) Close out
c) Cost plus markup
d) Versioning
When a hockey team sets its ticket prices so it can achieve its goal of increasing its fan base by five percent,the hockey team is establishing a price objective in conjunction with a __________ goal.
a) licensing
b) cost
c) sales
d) contingency
A sporting event setting ticket prices based on potential customers' ability to pay is an example of a price
a) promotion
b) objective.
c) restriction.
d) motive.
A college athletic department sets the football ticket prices so that the organization earns income of $12 per ticket after covering expenses. This is an example of a price objective based on
a) demand.
b) competition.
c) profitability.
d) volume.
Why do sportswear stores calculate break-even in units?
a) To identify which products they should purchase for resale.
b) To find out how much profit they will earn after they break even
c) To identify which costs are variable and which are fixed
d) To determine how many products they must sell to break even
.Why would an event marketer promote an upcoming celebrity golf tournament at an exclusive course as a once-in-a-lifetime event?
a) To have expensive media coverage
b) To obtain more industry support
c) To increase advertising costs
d) To generate higher ticket prices
An increase in ticket prices is most accepted by fans if a sport has a(n) __________ demand for tickets.
a) inelastic
b) low
c) elastic
d) unitary
Penetration pricing is usually in the introductory stage of the life cycle and it usually involves______
a) pricing relatively low
b) pricing relatively high
c) using odd-even pricing strategies
d) pricing at a discount
When setting ticket prices for professional baseball games, the organization considers the team's performance, which is a(n) __________ factor.
a) situational
b) ethical
c) operational
d) developmental
Psychological pricing is a strategy in which prices are set in odd number right below an even price. Which is a strategy of odd-even -pricing
a) 25.00
b) .05
c) 29.95
d) 1.00
Which is the correct definition of price ceiling
a) the price above the highest price
b) the price below the highest price
c) the highest price allowed to be charged for an item.
d) the only price allowed by the company
__________ is the activity of estimating the quantity of a product or service that consumers will purchase
a) Generalizing
b) Assumption
c) Forecasting
d) Setting a price floor
Fixed cost tends to __________
a) change with demand
b) stay the same
c) change with changes in volume
d) vary to some extent
Variable Cost
a) stay the same constantly
b) never changes
c) changes when sales volume goes up or down
d) changes when sales go up only
A business does not make a _______ until it passes the break even point
a) revenue decrease
b) revenue increase
c) loss
d) profit
Why do businesses calculate the break-Even point?
a) For Setting prices
b) Determining capital needs
c) Relocating the business
d) all of the above
The product mix strategies is the collection of products and services that a company chooses to offer its _______
a) competitors
b) market
c) Like businesses
d) employees
Product skimming involves setting the prices relatively _______
a) low
b) equal to the competition
c) less than the competition
d) high
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