| A | B |
|---|
| What would be the most appropriate pricing strategy for a business in a small town where unemployment has skyrocketed and the economy is in a downturn? | Flexible pricing |
| Why do some new companies set their selling prices as low as they can? | To get market share as fast as possible |
| One way that many businesses use technology to reduce the costs associated with marking prices on products is by using | computer-generated tags |
| How does technology help businesses when it enables them to obtain and analyze vast amounts of information that impact the pricing function? | By determining the best time to adjust prices |
| What is an external factor that affects the price that a business charges for its products? | Economic conditions |
| Technology allows manufacturers to pre-print product packaging with Universal Product Codes (UPC's) which contain ______________information | pricing |
| What pricing tactic might be considered questionable by some businesses? | Developing a complex pricing structure |
| Charging premium prices for lumber to hurricane victims because supply is limited is | unethical and legal |
| Which of the following is an example of an ethical issue as it relates to predatory pricing:A local ice-cream shop prices menu items below cost in an effort to eliminate its competition | A local ice-cream shop prices menu items below cost in an effort to eliminate its competition. |
| Wal-Mart and Sears attract two different types of customers because of their pricing strategies. They have established their prices based on ___________decisions | customer |
| Which of the following factors should businesses consider when establishing a product's selling price: | Economic conditions |
| Companies A, B, and C sell similar products. Together, they recently decided to sell their products for the same price. In what unethical activity are the businesses engaging? | Price fixing |
| What might happen if a business's customers feel that they are not getting the most value for their money? | Customers spend money elsewhere |
| The Standard Oil Company's price-fixing tactics and monopolistic control over oil refining and distribution in the late 1800's was a major contributing factor in the enactment of which piece of legislation? | Sherman Antitrust Act |
| What is the advantage to a business of using bar-code pricing? | Easier to change prices |
| What is an example of an unethical pricing practice? | A company prices its products low in an attempt to drive its competitors out of business. |
| What costs do businesses usually include in the price of their products? | Transportation |
| A business charges a small company a higher price for a product than it charges a large company for the same product. What does this represent? | Price discrimination |
