Bus 402 Wk 7 Quiz 6 Chapter 11,12

BUS 402 WK 7 Quiz 6 Chapter 11,12

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1) Tom is working on a pricing strategy for his company's new product line. In order to determine the price ceiling for these products, Tom needs to know:

A) what price range will work best.

B) what his company's cost structures are.

C) what his customers are willing to pay.

D) what his competitors are charging.

2) When pricing products, it is important to remember that:

A) there is an ideal price that customers will pay for a given product or service.

B) once the acceptable price range is found, prices should not be changed again.

C) pricing is more an intuitive than a quantitative process.

D) a customer orientation in price setting is most important.

3) Small business owners get into trouble when determining their price floor when they:

A) focus on what the customer will pay.

B) assume their costs are the same as their competitors'.

C) begin to track financial ratios to determine what they are doing.

D) use the price floor as the minimum price in their acceptable price range.

4) The final price set by the entrepreneur for the products depends on:

A) the desired image for the products.

B) the cost structure.

C) what customer will pay.

D) what competitors are charging.

5) When small manufacturing companies face rapidly increasing raw material costs, they can adopt a number of strategies including:

A) pass the increasing costs along to their customers without comment.

B) absorb costs for the short term and plan for double price increases in the next pricing cycle.

C) reconsider their competitive strategy and seek a niche they can service.

D) emphasize the value their company provides customers.

6) ________ pricing strategy introduces a new product at a low price to gain quick acceptance and extensive distribution in a mass market.

A)...