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PPM712S - PRODUCT PRICING MANAGEMENT - 1ST OPP - NOV 2022 |
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n Am I BI A u n IVER s I TY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCEAND EDUCATION
DEPARTMENT OF MARKETING, LOGISTICSAND SPORT MANAGEMENT
QUALIFICATION : BACHELOR OF MARKETING
QUALIFICATION CODE: 07MARB
LEVEL: 7
COURSE CODE: PPM712S
COURSE NAME: PRODUCTPRICING MANAGEMENT
SESSION: OCTOEBER2022
PAPER: THEORY
DURATION: 3 HOURS
MARKS: 100
FIRST OPPORTUNITY EXAMINATION PAPER
EXAMINER(S}
MR. C. KAZONDOVI
MR. D. KANDJIMI
MODERATOR:
DR. E. SIMATAA
INSTRUCTIONS
1. Answer ALL the questions.
2. Write clearly and neatly.
3. Number the answers clearly.
4. Use the tables provided on page [7] to answer Questions 5 & 6:
Detach and insert into your answer booklet
5. Write as legible as possible, and as precise as possible
6. Read each question carefully
7. Use a non-programmable calculator (STRICTLYNO USEOF
CELLPHONE/MOBILE CALCULATOR)
8. Round of your answers to two (2) Decimal places.
THIS QUESTION PAPER CONSISTS OF 7 PAGES (Including this front page)
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4.3 Alice Rone sells watches. Her competitor sells a new line of watches for N$30 each. Alice
needs a 30% mark-up on cost to make her desired profit, and she must meet price competition.
What cost can Alice afford to bring these watches into the store?
(2marks)
4.4 Neal Wall bought a computer from AC. Suppliers for N$1,200. Neal plans to resell the
computer for N$1,800. What is Neal Wall's dollar mark-up on selling price? (Round to the
nearest tenth percent.)
(2 marks)
4.5 Fred Miguel bought rings for his jewellery shop that cost N$90 each. Fred must mark up each
ring 40% on selling price. What is the selling price of each ring? What is the dollar mark-up?
(2 marks)
4.6 Bra Jakes sells Calculators. His competitor sells a new line of calculators for N$30 each. Bra
Jakes needs a 30% mark-up on selling price to make his desired profit, and he must meet price
competition. What cost can Bra Jakes afford to bring these calculators into the store? What is
the dollar mark-up?
(2 marks)
4.7 Mabrura sells staplers for N$14 that cost N$8. What is Mabrura's percent mark-up at cost?
(Round to the nearest tenth percent.) What is Mabrura's percent mark-up on selling price?
(Round to the nearest hundredth percent.)
(2 marks)
4.8 Jane bought an office desk for her room for N$400 and marked up 30% on selling price to sell
the desk on because she got another one. Jane marked the desk down 5% for one week. After
a week, Jane marked the desk up 2%. The last week she marked it down 8%. What is the final
selling price?
(2 marks)
4.9 Dagg Opapos owns a small fruit and vegetable shop. Dagg has 40 dozen tomatoes. Joe
expects a 20% spoilage rate. The tomatoes cost N$1.10 per dozen. Dagg wants a 70%
mark-up on cost. What should Dagg charge for each dozen tomatoes? (Round to the nearest
cent.)
(2 marks)
4.10 Jane Corporation produces Sweatshirts for a selling price of N$19.25. Their variable cost
is N$13.10. Assuming a fixed cost of N$6,150 what is Jane Corporation's break-even point?
(2 marks)
Question 5
[15 marks]
True or False Questions
Use the table provided on [page 6] to answer these questions. Detach and insert it into your
answer booklet. 1.5 mark will be awarded for each correct answer.
5.1 Under oligopolistic competition the market consists of a few sellers who are highly sensitive to
each other's pricing and market strategies
5.2 When initiating price changes the company must anticipate possible reactions from both
buyers and competitors.
5.3 Monopoly or lack of regulation means one can always set prices at will.
5.4 Price discrimination is the practice of charging different mark-ups for the same product.
5.5 In setting the price of a product by its perceived value, the company decides on the value of
the product.
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6.5 When consumers pay N$100-00 for a bottle of perfume that only contains N$3-00 worth of
ingredients, they are participating in:
a. upscale pricing.
b. discriminatory pricing.
c. psychological pricing.
d. promotional pricing.
e. premium pricing
6.6. Prices that buyers carry in their minds and refer to when they look at a given product
are called:
a. segmented prices.
b. reference prices.
c. relationship prices.
d. basing-point prices.
e. penetration pricing
6.7. With respect to setting pricing amounts, the belief that individual digits in a product's price
have symbolic and visual qualities that should be considered in setting price is linked to:
a. odd pricing.
b. promotional pricing.
c. symbolic pricing.
d. psychographic pricing.
e. psychological pricing.
6.8. If a company pursues ______
_, it often temporarily prices products below the list
price, and sometimes even below cost, to increase short-run sales.
a. psychological pricing
b. promotional pricing
c. symbolic pricing
d. psychographic pricing
e. limit pricing
6.9. The type of promotional pricing that uses a few products with very low prices to attract
customers into the store in the hope that they will then buy regularly priced items is called:
a. special-event pricing.
b. cash rebates.
c. loss leaders.
d. low-value pricing.
e. value pricing
6.10. A major factor in price increases is most likely:
a. promotional expenditures.
b. government regulations.
c. competitors.
d. under demand.
e. cost inflation
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Question 5
5.1 -
5._2
5.3
5.4
5.5
-
5.6 .,
5.7 - ·~-
5.8
.
S.9 .'.
5.10
Question 6
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6.1
6.2
6.3
6.4 .. '
6.5 :
6.6., '•
6.7 '
6.8
6.9
6.10
6.1.t
6.12
6.13··
6.14
6,.15.
SECTION A: ANSWER SHEET
True False
[Total: 10 X 1.5 = 15 Marks]
A- B
[Total: 10 X 1.5 = 15 Marks]
C
'
. D . -
E_._
.·.
•.
STUDENT NAME & STUDENT NO: _____________
_
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