Exam 14: Developing Pricing Strategies and Programs

A toaster manufacturer who has invested $1 million in the business wants to set a price to earn a 20 percent return on investment,specifically $200,000.What pricing method should it choose?

Free

(Essay)

4.8/5

(33)

Question 1

Correct Answer:

Verified

The toaster manufacture should go for a target-return pricing.While using this pricing method,companies determine the price that yields its targeted rate of return on investment.

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

Free

(Essay)

4.7/5

(38)

Question 2

Correct Answer:

Verified

The Internet helps buyers to:
• Get instant price comparisons from thousands of vendors
• Name their price and have it met
• Get products free
The Internet helps sellers to:
• Monitor customer behavior and tailor offers to individuals
• Give certain customer access to special prices
The Internet helps both buyers and sellers to negotiate prices in online auctions and exchanges or even in person.

Traditionally,price was never a major determinant of buyer choice.

Free

(True/False)

4.7/5

(36)

Question 3

Correct Answer:

Verified

False

Explain the concept of overdemand.

(Essay)

4.7/5

(44)

Question 4

The key to perceived-value pricing is to ________.

(Multiple Choice)

4.9/5

(40)

Question 5

A company decided to conduct a market survey for its new MP3 player which it had priced at $150.However,in the survey,95 percent of the participants said that the maximum they would pay for the MP3 player is $100.This is an example of which of the following possible consumer reference prices?

(Multiple Choice)

4.9/5

(39)

Question 6

The airline industries implement yield pricing by offering discounted but limited early purchases,higher-priced late purchases,and the lowest rates on unsold inventory just before it expires.

(True/False)

4.8/5

(37)

Question 7

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

(Multiple Choice)

4.8/5

(29)

Question 8

In a(n)________,the buyer announces something he or she wants to buy,and potential sellers compete to offer the lowest price.

(Multiple Choice)

4.7/5

(33)

Question 9

What should a company do if its competitor's product contains some features that are not available in its product?

(Essay)

4.8/5

(37)

Question 10

If consumers were largely indifferent to a $0.50 increase in the price of a liter of milk,the price rise is said to fall within customers' ________.

(Multiple Choice)

4.9/5

(31)

Question 11

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

(Multiple Choice)

4.7/5

(37)

Question 12

When Cathy went shopping,she paid a lot to buy a jacket that had a well-known designer's tag attached to it.After a few days,she came across a jacket which was undistinguishable from the one she had bought but was priced 5 times lesser than the earlier one.She didn't give this a second thought because she was convinced that the designer label she had bought was worth it.What can be deduced from this?

(Essay)

4.8/5

(33)

Question 13

When consumers examine products,they often compare an observed price to an internal price they remember.This is known as a(n)________ price.

(Multiple Choice)

4.8/5

(34)

Question 14

Matt's retail store offers all its products at $2 lesser than its competitors throughout the year.The store never runs any promotional campaigns or offers any additional special discounts.Matt's retail store is following a(n)________.

(Multiple Choice)

4.8/5

(29)

Question 15

Psychological discounting involves setting an artificially high price and then offering the product at substantial savings.

(True/False)

4.9/5

(37)

Question 16

Madame Tussaud's wax museum is a popular tourist attraction.The museum charges higher entry rates for tourists compared to locals.This form of price discrimination is known as ________.

(Multiple Choice)

5.0/5

(36)

Question 17

A retailer who holds on to a(n)________ policy charges a constant low price with little or no price promotions and special sales.

(Multiple Choice)

4.9/5

(33)

Question 18

A small change in price of a product within the price indifference band causes a substantial change in the demand of that product.

(True/False)

4.9/5

(32)

Question 19

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?

(Multiple Choice)

4.9/5

(29)

Question 20

Showing 1 - 20 of 150

Exam 14: Developing Pricing Strategies and Programs

A toaster manufacturer who has invested $1 million in the business wants to set a price to earn a 20 percent return on investment,specifically $200,000.What pricing method should it choose?

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

Traditionally,price was never a major determinant of buyer choice.

Explain the concept of overdemand.

The key to perceived-value pricing is to ________.

A company decided to conduct a market survey for its new MP3 player which it had priced at $150.However,in the survey,95 percent of the participants said that the maximum they would pay for the MP3 player is $100.This is an example of which of the following possible consumer reference prices?

The airline industries implement yield pricing by offering discounted but limited early purchases,higher-priced late purchases,and the lowest rates on unsold inventory just before it expires.

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

In a(n)________,the buyer announces something he or she wants to buy,and potential sellers compete to offer the lowest price.

What should a company do if its competitor's product contains some features that are not available in its product?

If consumers were largely indifferent to a $0.50 increase in the price of a liter of milk,the price rise is said to fall within customers' ________.

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

When consumers examine products,they often compare an observed price to an internal price they remember.This is known as a(n)________ price.

Matt's retail store offers all its products at $2 lesser than its competitors throughout the year.The store never runs any promotional campaigns or offers any additional special discounts.Matt's retail store is following a(n)________.

Psychological discounting involves setting an artificially high price and then offering the product at substantial savings.

Madame Tussaud's wax museum is a popular tourist attraction.The museum charges higher entry rates for tourists compared to locals.This form of price discrimination is known as ________.

A retailer who holds on to a(n)________ policy charges a constant low price with little or no price promotions and special sales.

A small change in price of a product within the price indifference band causes a substantial change in the demand of that product.

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?

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Gathering Information and Forecasting Demand

Conducting Marketing Research

Creating Customer Value,satisfaction,and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Designing and Managing Marketing Channels and Value Networks

Managing Retailing,wholesaling,and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, sales Promotions, events, and Public Relations

Managing Digital Communications: Online, social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization

Filters