Chapter 11

Question 1

Fixed cost

Answer 1

When money dose not very with the number of units sold.

Question 2

Example for a fixed cost

Answer 2

rent/utilities and insurance premiums

Question 3

psychological pricing

Answer 3

based on the believe that customers perceptions of a product are strongly influenced by price.

Question 4

example for a psychological pricing

Answer 4

used by retail pricing

Question 5

prestige pricing

Answer 5

higher than average pricing that is used to suggest status and prestigious to the customer.

Question 6

Example for prestige pricing

Answer 6

Since the shirt cost $100 the shirt has goos quality.

Question 7

Odd even pricing

Answer 7

where old numbers are employed to suggest barons

Question 8

Example for odd even pricing

Answer 8

$1.99

Question 9

price lining

Answer 9

Items in certain category are priced the same.

Question 10

Example for price lining

Answer 10

fruit snacks, the price will be determined based off of the other brands.

Question 11

Promotional pricing

Answer 11

lower prices are offered for a limited period of time

Question 12

Example for promotional pricing

Answer 12

Taco Tico promotes $.99 tocos for a limited time

Question 13

Multiple- unit pricing

Answer 13

Items are priced in multiples

Question 14

Example of multiple- unit pricing

Answer 14

buy 3 pairs off this for only $.99

Question 15

Bundle pricing

Answer 15

several complimentary pieces are sold at a single price

Question 16

Example for Bundle pricing

Answer 16

Computer companies

Question 17

Discount Pricing

Answer 17

offers customers reduction from original price to encourage discounts.

Question 18

Example for dicount pricing

Answer 18

percentage off of discounts

Question 19

2/10, net/30

Answer 19

the buyer can reduce selling experiences by 2% by paying in ten days. And if they don’t they need to pay in 30 days.

Question 20

Break Even Point

Answer 20

The gain from your business activity equals the cost included in presetting it.

Question 21

Example for a break even profit

Answer 21

It gives you an idea of the number of units you must sell to make a profit.

Question 22

Mark up

Answer 22

the amount added to the cost of an item to cover expenses.

Question 23

Mark down

Answer 23

the amount of money taken from the original price

Question 24

Example for a mark down price

Answer 24

Business sometimes may ned to mark down their product so that people will buy them.