Question: Standard markup pricing refers to

Answer: adding a fixed percentage to the cost of all items in a specific product class.

Question: Which term describes factors that limit the range of prices a firm may set?

Answer: pricing constraints

Question: Price refers to

Answer: the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Question: Barter refers to

Answer: the practice of exchanging products and services for other products and services rather than for money.

Question: Demand-oriented approaches weigh factors that underlie expected __________ more heavily than such factors as cost, profit, and competition when selecting a price level.

Answer: customer tastes

Question: Netflix used to charge $14.99 per month for its movie rental service. However, when Blockbuster introduced the same service at $13.99, Netflix then dropped its price to $13.99. Netflix most likely made this price reduction in an attempt to

Answer: maintain market share

Question: Which of the following statements about the price-setting process is most accurate?

Answer: Sometimes pricing strategies overlap, and a seasoned marketer will consider several strategies when choosing an approximate price level.

Question: Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in a significant increase in quantity demanded. The demand for latex gloves is

Answer: elastic.

Question: Target return-on-investment pricing refers to

Answer: setting a price to achieve an annual target ROI.

Question: In some cases, penetration pricing may follow skimming pricing. The skimming pricing would help __________ and the penetration pricing would help__________.

Answer: recoup initial research and development costs; increase market share