Pricing Trivia

This refers to a situation in which a change in price has very little effect on demand for a product Inelastic Demand

When a firm charges different prices to similar customers in similar situations it is know as… Price Discrimination

What is the formula for break-even Total Costs / Selling Price

What is a firm’s percentage of the total sales volume generated by all the competitors in an industry known as? Market Share

The legal strategy of pricing merchandise below cost to attract customers to the store to buy something else is… Loss Leader

Why don’t you play poker on the savanna? Too many cheetahs

What is the formula for Sales Revenue? Price X Qty Sold

This allows customers to compare prices in relation to a standard measure Unit Pricing

The pricing goal that is focused on determining a company’s profit margin is better known as… Return on Investment

If an increase in price has a significant impact on my income, my demand for that product is… elastic

Cause if they dropped them they would break Why do hens lay eggs? Cause if they dropped them they would break

Manufacturing Costs = $3. 50 Marketing Expense = $ Manufacturing Costs = $3.50 Marketing Expense = $.65 Selling Price = $6.50 What is the ROI? 58%

Qty Produced = 100 Cost of Production = $3/unit Price of Goods = $10 Qty Produced = 100 Cost of Production = $3/unit Price of Goods = $10.00 What is my break-even point? 30 units

To understand pricing, a marketer must first understand the anticipated satisfaction consumers place on a product. This is know as… Value

What do you call a cow with no legs? Ground Beef

What goal of pricing would typically require a company to reduce their price (make less profit) ? Gain Market Share

This is a tactic used by a firm of advertising a low price for an item it has no intention of selling. Bait – And – Switch

The demand for insulin tends to be… Inelastic

Manufacturing Cost = $5. 00 Marketing Expense = $. 50 Profit = $2 Manufacturing Cost = $5.00 Marketing Expense = $.50 Profit = $2.00 What is ROI? 36%

What did the fish say when he ran into the concrete wall? Dam

Price Fixing (or I will accept Collusion) What is the activity called when competitors agree on certain ranges within which they set their prices? Price Fixing (or I will accept Collusion)

If there are few options of a product to choose from the demand is… inelastic

FINAL JEOPORDY

Toll Commission Tuition Name 5 forms of pricing Fee Amount Admission Dues Wages Rent Toll Commission Tuition Interest Salary Bonus