Quiz 8 - 1. Firehouse Subs just opened in Gainesville....

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1. Firehouse Subs just opened in Gainesville. Firehouse's _______ costs include the rent for the location and utilities, and their _______ costs include the ingredients and labor for each sub that is made. Student Response Value Correct Answer Feedback A. Fixed, Variable 100% B. Fixed, Controllable C. Input, Output D. Uncontrollable, Variable E. Variable, Fixed General Feedback: Lecture page 102 Fixed costs are constant in the short run and do not change with the quantity of output. Rent and utilities are examples of fixed costs. Variable costs vary directly with the amount of output. Ingredients and labor are examples of variable costs. Score: 1/1 2. Joe walked into his local department store where he examined several new shirts. After trying on several of them, he decided on two oxford button-downs. He took the shirts to the cash register where the bar codes on the tags were scanned, and his total amount was flashed on the screen and announced by the cashier. Based on this example, what type of pricing strategy was used? Student Response Value Correct Answer Feedback A. Satisficing B. Sticker pricing 0% C. Quality pricing D. Participative pricing
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Student Response Value Correct Answer Feedback E. Administered pricing General Feedback: Lecture page 101 A) Satisficing is the tendency to select a satisfactory option that can work for the situation rather than the “optimal” solution. B) Sticker pricing is not a type of pricing strategy. C) This is a made up term. D) Participative pricing is when there is no set price. It is open for negotiation like at an auction. The buyer is participating in the setting of the price. E) Administered pricing is the opposite of participative pricing. The price is not determined by the market. When a person walks into a store, there are price tags on the items and the price is not negotiable. The total the cashier announces to Joe is the administered price. Score: 0/1 3. Rhonda is a procurement officer for the government and needs to hire a new plumbing company that she could pay a fixed price per year to get their services on demand. She sends out this request to a plumbing website where multiple plumbing firms respond with their prices. Rhonda will choose the lowest price offer. This is an example of what? Student Response Value Correct Answer Feedback A. Demand-Based Pricing B. Value-Based Pricing C. Price Leader/ Follower D. Competitive Bid 100% E. Comparative Cost Pricing General Feedback: Lecture page 109 A. “Demand-based pricing” is an umbrella term for various pricing strategies, such as price skimming, price penetration, prestige pricing, bundle pricing, demand-minus pricing and chain markup pricing. In this quiz question, none of these strategies are used.
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B. “Value-based pricing” is when subjective judgments are heavily taken into account in order to align the price with the value delivered to the customer. It includes understanding the use of the product, analyzing the benefits, analyzing the costs involved, and looking at the cost/benefit
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This note was uploaded on 05/31/2010 for the course MAR 2023 taught by Professor Lutz during the Summer '08 term at University of Florida.

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Quiz 8 - 1. Firehouse Subs just opened in Gainesville....

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