Question

Optional product pricing involves selling the base product at ________.

Select one:

a. what may be a "standard" margin and selling the options or accessories at a higher markup

b. a high markup, with the accessories at a competitive price

c. one price with deep discounts on accessories

d. a high margin with the accessories offered as a part of the bundle

The acceptable price range of a product or service is the area between the ________ defined by customers in the market and the ________ established by the company's cost structure.

Select one:

a. price floor; price ceiling

b. image; quality

c. price ceiling; price floor

d. price floor; value

Which of the following is/are true regarding cost-plus pricing?

Select one:

a. It encourages the manufacturer to operate efficiently.

b. It fails to consider competitors' prices appropriately.

c. It fails to guarantee the manufacturer a desired profit margin.

d. Only A and C.

CD Connection sells popular CDs at three price levels: $11, $14, and $17. This illustrates which of the following pricing techniques?

Select one:

a. Odd pricing

b. Leader pricing

c. Price lining

d. Suggested retail pricing

Answer 1

Ans 1: a. what may be a "standard" margin and selling the options or accessories at a higher markup

Ans 2: c. price ceiling; price floor

Ans 3: b. It fails to consider competitors' prices appropriately.

Ans 4: c. Price lining