| A | B |
|---|
| This pricing strategy dictates that you consider your business costs and your profit objectives. | cost-based pricing |
| Uses odd prices ($19.99) to suggest bargains and even prices ($20) to suggest higher quality. | odd/even pricing |
| Determining a price strategy involves which of the following? | selecting a basic approach to pricing, determining a pricing policy,choosing an introductory price |
| Amount or percentage by which a business lowers its original retail prices in order to move merchandise. | markdown |
| To increase profits on individual sales, one can increase | prices. |
| A pricing policy that allows customers to bargain for price. | flexible-price |
| If the demand for a product is high and supply is low, you can command a | high price. |
| These costs are subject to change depending on the number of units sold. | variable costs |
| The law of ____________________ affects prices. | supply and demand |
| If a price is ____________________, changing the price will have little or no effect on demand. | inelastic |
| ____________________ prices items according to category. | Price lining |
| There are three basic price strategies entrepreneurs can use when pricing their products: cost-based, ____________________, and competition-based pricing. | demand-based |
| The costs of a product are affected by the ____________________ in the distribution channel. | pricing structure |
| If a price is ____________________, a small change in price may cause a significant change in demand. | elastic |
| A(n) ____________________ policy is one in which all customers are charged the same for a product. | one price |
| A(n) ____________________ is the amount earned as a result of an investment in a company. | return-on-investment |
| pricing that offers customers reductions from the regular price | discount pricing |
| charging a high price to recover costs as quickly as possible | price skimming |
| pricing based on the belief that customers base perceptions of a product on price | psychological pricing |
| builds sales by charging a low initial price to keep unit costs low | penetration pricing |
| number of units of a product that, when sold at a given price, covers production and distribution costs | break-even point |
| the amount added to the cost of an item to cover expenses and ensure a profit | markup |
| offers lower prices for a limited period to generate sales | promotional pricing |
| employs higher-than-average prices to suggest exclusiveness and status | prestige pricing |
