Exam 14: Developing Pricing Strategies and Programs

Companies sometimes initiate price cuts in an attempt to dominate the market through lower costs.

When Coca-Cola carries a different price depending on whether the consumer purchases it in a fine restaurant,a fast-food restaurant,or a vending machine,then this form of price discrimination is known as ________.

On sites such as eBay and Amazon.com,the seller puts up an item and bidders raise the offer price until the top price is reached.What kind of auctions are these?

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

Everyday low pricing is most suitable if ________.

A company that is looking to maximize its market share would do well to follow ________ pricing.

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.

After determining its pricing objectives,what is the next logical step a firm should take in setting its pricing policy?

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

________ are offered by a manufacturer to trade-channel members if they will perform certain functions,such as selling,storing,and record keeping.

An umbrella manufacturing company's fixed costs are $275,000.The variable cost per unit is $5 and each umbrella is sold at $10.How many units should the firm sell in order to break even?

How can companies initiate price cuts and what are the traps that companies can fall into because of this?

When supermarkets and department stores drop the price on well-known brands to stimulate store traffic,they are said to be following ________.

Generally,consumers prefer small price increases on a regular basis to sudden,sharp increases.

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

In which of the following forms of countertrade do buyers and sellers directly exchange goods,with no money and no third party is involved?

When Sony introduced the world's first high-definition television to the Japanese market in 1990,it was priced at $43,000.This helped Sony to scoop the maximum amount of revenue from the various segments of the market.The price dropped steadily through the years-a 28-inch Sony HDTV cost just over $6,000 in 1993,but a 40-inch Sony HDTV cost only $600 in 2010.What pricing strategy did Sony use here?

A company does not set a final price until the product is finished or delivered.This is known as ________.

When the airline industries offer discounted but limited early purchases,higher-priced late purchases,and the lowest rates on unsold inventory just before it expires,what kind of a pricing technique are they said to be using?

Consumers are less price-sensitive when ________.