Exam 10: Pricing: Understanding and Capturing Customer Value

Pricing a product mix is often difficult because various products have related demand and costs, and they face different degrees of competition.

List four types of segmented pricing.

The Internet offers ________, where the price can easily be adjusted to meet changes in demand. captive pricing dynamic pricing basing-point pricing price bundling cost-plus pricing

Rent, electricity, and executive salaries are examples of ________ costs. fixed variable total accumulated marketing

In industrial markets, salespeople outrank top management in determining the sales price of products, as well as pricing objectives and policies.

Scenario Quills, Inc., is a manufacturer of ball-point pens, pencils, and stationery.The firm's primary distribution strategy is to sell in large volumes to office supply stores and large discount chains.Charles Powell, CEO of Quills, had hoped to manufacture and sell in large enough quantities that prices could be held low.However, in the first several months, the firm experimented with the price portion of its marketing mix in an effort to cater to a number of markets. How could optional product pricing be used by Quills?

Price setting is usually determined by ________ in large companies. top management divisional managers product-line managers purchasing departments both B and C

Scenario Quills, Inc., is a manufacturer of ball-point pens, pencils, and stationery.The firm's primary distribution strategy is to sell in large volumes to office supply stores and large discount chains.Charles Powell, CEO of Quills, had hoped to manufacture and sell in large enough quantities that prices could be held low.However, in the first several months, the firm experimented with the price portion of its marketing mix in an effort to cater to a number of markets. Would quantity discounts be possible for Quills to offer Why?

Federal legislation on price-fixing requires that sellers set their prices ________. based on their fixed and variable costs without communication with competitors to achieve a specified profit margin with the intention of putting competitors out of business consistently throughout a region

Product costs set a floor to a product's price; consumer perceptions of the product's value set the ceiling.