Download 27Completition - Marketing1atRHS2011

27Completition
Completion
Complete each sentence or statement.
1. A nonprofit organization plans to raise money by producing and selling a calendar of community events. The
organization will produce 2,000 calendars which it plans to sell for $12 each. The cost of producing and
marketing the calendars will be $3.75 each. The organization will have to sell ____________________ before
it begins to make a profit.
2. To understand pricing, a marketer must first understand the ____________________, which is also known as
the anticipated satisfaction consumers place on a product.
3. The manufacturers of Sparkle Detergent sell 15 percent of all the laundry detergent sold in the greater Miami,
Ohio, area. Therefore 15 percent is the company’s market ____________________.
4. Wages, rent, and loan interest are all examples of ____________________.
5. Hilda and Eugene have a home-based business making jellies and jams. They sell their fruit condiments for
$6 a jar. Their manufacturing cost is $3.25 a jar; their distribution and marketing costs are an additional $1.15
per jar. Their rate of return on investment is ____________________.
6. Whenever Jaime’s two children have colds, he always gives them All-Better Pediatric Cold Medicine. He
trusts the brand and will not buy any other over-the-counter cold medicine for his children. Jaime’s demand
for All-Better Pediatric Cold Medicine is ____________________.
7. At a grocery store, consumers can compare similar products even if the products are of different sizes or come
in different packages. Comparison is possible because of the ____________________ pricing the stores use
to show prices in relation to a standard measure such as cost-per-ounce.
8. You’ve invited your prospective in-laws to dinner. You know they love chocolate soufflé and you’ve
promised to make one for them. An hour before they’re due, you realize you have no chocolate. You run to
the store, eager to buy any brand of chocolate you can find. Price is not important at this moment. Your
demand for chocolate is ____________________.
9. Offering one customer one price for a product and another customer a different price for the same product in a
similar situation is called price ____________________.
10. Karen is a product manager at Just Heavenly Ice Cream Company. One of her responsibilities is to set the
price for new frozen desserts. Karen always begins each pricing assignment by calculating the cost of making
the new dessert. Then she adds the projected profit margin in order to arrive at the retail price. Thus, Karen
uses the concept of ____________________ pricing.
11. Irene went to a baseball game and paid $6 to sit in the upper level of the stadium above the third base line.
Keesha paid $35 to go to the same game and sit in the box seats behind home plate. The difference in the
ticket prices is an example of ____________________ pricing.
12. Savco Drugs is offering tubes of sunblock at three tubes for $15. This is an example of
____________________ pricing.
13. ____________________ pricing is a new-product pricing method that allows a company to attract a large
number of customers quickly or to lure customers from another brand.
14. Denis is a gourmet cook who loves shopping for fresh produce at farmers’ markets. Because he enjoys
bargaining with the growers, Denis is glad the growers use the pricing policy called ____________________.
15. Companies selling luxury products price them at amounts such as $30, $50, and $100. This psychological
pricing technique is called ____________________ pricing.
16. The pricing method in which there is no relationship between cost and price or between demand and price is
called ____________________ pricing.
17. The Settee Company suggests a list price of $850 for its finest sofa. If the series trade discounts are 30 percent
for retailers and 15 percent for wholesalers, the wholesalers would pay ____________________ for each
sofa.
18. When a company prices its products in line with the market leader’s prices, the company is using a pricing
method called ____________________ pricing.
19. Pathfinder Camping Equipment offers sporting good retailers an 8 percent discount for placing orders by
February 15. The buyer for Westward Ho! ordered $9,750 worth of equipment on February 5. The net amount
payable on the invoice is ____________________.
20. A volleyball costs Spike’s Sporting Goods $8.50 and Spike’s markup is $3.85. The retail price of the
volleyball is ____________________.
21. A plumbing fixtures manufacturer offers a 12 percent discount on cumulative orders placed between January
1 and March 31 totaling more than $10,000. A plumber orders $3,460 worth of goods in January, $2,890
worth in February, and $6,750 worth in March. The total cost to the plumber (excluding tax) for the
merchandise is ____________________.
22. A toy car manufacturer sells its cars for $.89 each for orders of less than 144 cars, and for $.75 each for orders
of 144 or more cars. A wholesaler buys 165 cars. The sales tax is 6 percent and the shipping costs total $3.95.
The total cost of the order to the wholesaler is ____________________.
23. The Markup ____________________ Table is a calculation aid that allows one to determine the relationship
between an item’s markup percentages based on retail and on cost.
24. Elegant Leathergoods sells its most popular women’s handbag for $295. The store’s cost for the handbag is
$160. The percentage markup based on cost price is ____________________.
25. A lawn mower costs $67 and its markup is $32.45. Its percentage markup on retail price is
____________________.
26. Pleasant Valley Gardening Center gives all local professional gardeners a 22 percent discount on flowers and
trees. Ralph of Ralph’s Green Thumb Gardening Service bought $530 worth of flowers and two apple trees
priced at $110 each. The total dollar amount of Ralph’s discount is ____________________.
27. Rainbow Paint Store buys an indoor latex paint for $4.75 for a gallon can. Rainbow sells the can for cost plus
a 35 percent markup on cost. The retail price of a gallon can of the paint is ____________________.
27Completition
Answer Section
COMPLETION
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ANS: 625
ANS: value
ANS: share
ANS: price
ANS: 36 percent
ANS: inelastic
ANS: unit
ANS: inelastic
ANS: discrimination
ANS: cost-oriented
ANS: demand-oriented
ANS: multiple-unit
ANS: Penetration
ANS: flexible-price
ANS: odd-even
ANS: competition-oriented
ANS: $505.75
ANS:
going-rate
competition-oriented
ANS: $8,970
ANS: $12.35
ANS: $11,528
ANS: $135.13
ANS: Equivalents
ANS: 84 percent
ANS: 33 percent
ANS: $165
ANS: $6.41