Exam 14: Developing Pricing Strategies and Programs

How does the Internet help sellers discriminate between buyers and vice-versa?

When hotels, motels, and airlines offer discounts in slow selling periods, they are said to be offering ________.

Experience-curve pricing ________.

The minimum price that most consumers would pay for a given product is known as the ________ price.

Everyday low pricing is most suitable if ________.

________ price refers to what the consumers feel the product should cost.

________ pricing takes into account a host of inputs, such as the buyer's image of the product performance, the channel deliverables, the warranty quality, customer support, and attributes such as the supplier's reputation, trustworthiness, and esteem.

Which of the following is the first step in setting a pricing policy?

In first-degree price discrimination, the seller charges less to buyers of larger volumes.

A company must consider the product's stage in the life cycle and its importance in the company's portfolio before responding to a competitor's price cut.

________ reward dealers for participating in advertising and sales support programs.

Bella's has estimated the demand and costs associated with alternative prices. It has finally chosen to price its new offering in such a way that it will maximize the rate of return on investment. What can be deduced about the company's objective?

In ________, the firm bases its price largely on competitor's prices.

Companies who believe that a higher sales volume leads to lower unit costs and higher long-run profits are attempting to ________.

In which of the following auctions does the auctioneer first announce a high price for a product and then slowly decreases the price until a bidder accepts?

Daryl convinced his prospective client that Car A was the best for him. But, the client insisted that the car cost him a good $10,000 more than Car B, the one which he was thinking of buying. Daryl told him that the amount he would have to spend on the fuel, insurance, repairs, and maintenance for Car B would be 5 times more than what he would have to spend on Car A. Finally convinced, the client consented to buy Car A. What technique did Daryl use to convince his customer?

Pricing cues such as sale signs and prices that end in 9 are more influential ________.

In ________, the seller charges a separate price to each customer depending on the intensity of his or her demand.

Although consumers may have fairly good knowledge of the range of prices involved, very few can accurately recall specific prices of products.

If demand hardly changes with a small change in price, the demand is said to be ________.