Exam 10: Pricing: Understanding and Capturing Customer Value

The major price-adjustment strategies include discount and allowance pricing, segmented pricing, psychological pricing, promotional pricing, geographical pricing, dynamic pricing, and international pricing.

Environmental elements that affect pricing decisions are categorized as external factors.

________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks. Value-based Fixed cost Cost-based Variable Skimming

With product bundle pricing, sellers can combine several products and offer the bundle ________. as a working unit at a reduced price as a complete self-service package as a reward to loyal customers as segmented pricing

A quantity discount is a price reduction to buyers who purchase ________. frequently large volumes close outs inferior merchandise superior merchandise

When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing. revenue management penetration skimming time-based value-added

Each of the following economic factors can have a strong impact on a firm's pricing strategy except ________. an economic boom the reseller's reaction to price changes an economic recession inflation interest rates

To offset the pricing of its main product, the Toronto Zoo has partnered with a waste management company to turn animal waste into methane gas to be used to produce power.This is an example of __________. product line pricing optional-product pricing captive-product pricing by-product pricing allowance pricing

With ________ pricing, price is set to match consumers' perceptions of product value. variable cost cost-plus cost-based value-based everyday low

Which of the following is a cost-based approach to pricing? value-based pricing going-rate pricing break-even pricing good-value pricing A and C

Give two examples of products for which captive-product pricing may be used.

Functional discounts (offering a larger discount to wholesalers than to retailers) are legal Canada.

In Lima, Peru, 20 stores specializing in selling the same quality and brand of wheat products are located on one street.An individual seller cannot charge more than the going price without the risk of losing business to the other stores.This is an example of what type of market? pure competition monopolistic competition oligopolistic competition pure monopoly socialist

A company considering a price change should be concerned about consumers' reactions but not competitors' reactions.

How do consumers benefit from product bundle pricing?

Which of the following statements about a break-even chart is true? It is used to determine how the customer-perceived value changes with value-added pricing. It is a tool used to calculate fixed costs. It shows the level of earnings a company has during an accounting period. It is a tool marketers use to examine the relationship between supply and demand. It uses variable costs, the unit price, and fixed costs.

Value-based pricing is the reverse process of ________ pricing. variable cost cost-plus cost-based good-value value-added

Why is product line pricing used?

Why is price considered to be one of the most flexible elements of the marketing mix?

Identify and explain several situations in which price cuts or price increases might be necessary.