Exam 14: Developing Pricing Strategies and Programs

The first step in estimating demand is to understand what affects price sensitivity.Generally speaking,customers are most price sensitive to products that cost a lot or are ________.

Executives often complain that pricing is a big headache.Common mistakes include: price is not revised often enough to capitalize on market changes;price is set ________ of the rest of the marketing mix rather than an intrinsic element of a market-positioning strategy.

As a newly hired marketing associate,you have been given the responsibility to reduce the costs of your product by utilizing a process called "target costing." Explain how you would go about implementing a target costing program.

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

In ________,the retailer charges higher prices on an everyday basis but then runs frequent promotions in which prices are temporarily lowered below the EDLP level.

Consumers are "price takers" and accept prices at "face value" or as given.

Explain the relationship between fixed costs,variable costs,total cost,and average cost.

Today,________ is partially reversing the fixed pricing trend.

Following the industry average,your firm accepts a 20% markup on sales.If the unit cost of your product is $20.00,then the retail price would be ________.

Consumers often rank brands according to price tiers in a category.