Question
West offers a flat price for a trip to Yellowstone for a
wilderness hike. Wild Out West is using _____ pricing, a form of
_____ pricing.
Penetration; Competition-based
Penetration; cost-based
Bundle; demand-basedChain-markup; demand-based
Bundle; profit-based
Lecture page 107
A) Penetration pricing consist of starting with a low price
and gradually bringing it up. There is no mention of that in this
example. Also, penetration pricing is a form of demand-based
pricing.
B)Penetration is not a cost-based form of pricing. It
is demand-based.
C) The question describes a “flat price” for a trip to
Yellowstone (implying transportation) and a wilderness hike. That
comprises a bundle, which isa demand-based pricing approach.
D) There is no mention of a markup in this question. Also,
there is no long marketing channel in this example so it cannot be
chain-markup pricing.
E) This is a case of bundle pricing, but bundle pricing is a
form of demand-based pricing, not profit-based.
Question 4 The change in total revenue obtained by selling
one additional unit of a product is called: The change in total
revenue obtained by selling one additional unit of a product is
called:
average revenue.
marginal revenue.
median revenue.
marginal cost.
demand revenue.
Text page 341
A) Average revenue is the average amount of money received
per unit of output. Average revenue is total revenue divided by the
quantity sold.
B) Marginal revenue is the change in total revenue obtained
by selling one additional unit of output. It is the revenue
received from an additional unit of output.
C) Created term
D) Marginal cost by definition is the change in total cost
that results from producing and marketing one additional unit of
output. It is the cost of an additional unit.
E) Created term.
Question 5 Skip to question text.Leupold & Stevens, Inc.,
makes Leupold scopes for rifles and has introduced a new scope that
has the quality and performance for which Leupold & Stevens is
famous at a price much lower than it has ever solda rifle scope
before.
The new scope offers several different magnifications
and is the only scope in the $200range that is made in the United
States. Which pricing strategy is Leupold & Stevens using to
appeal to a larger market?
price lining
odd-even pricing
demand-backward
pricingskimming pricing
penetration pricing
Text page 353
A. “Price lining” is where a firm that is selling not just a
single product but a line of productsmay price them at a number of
different specific pricing points.
B. “Odd-even pricing” involves setting prices a few dollars
or cents under an even number. The presumption is that consumers
will relate the price
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