Exam 9: Pricing: Understanding and Capturing Customer Value

Freight-absorption pricing is used for market skimming and holding on to monopolistic markets.

The Robinson-Patman Act seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade.

What is a demand curve? Why is it useful to marketers?

An airline runs a 6-month promotional program where all baggage fees are waived. It is using a cost-based pricing strategy.

Price discrimination is allowed if a seller can prove that its costs are different when selling to different retailers.

Which of the following is an economic factor that affects the pricing decisions of a company?

An important consideration when determining what price to charge in a specific country is the nature of the wholesaling and retailing system in that country.

Movie theaters charge matinee pricing during the daytime, and resorts give weekend and seasonal discounts. This is illustrative of a ________ pricing strategy.

What are the two different types of costs a company incurs? Explain with examples.

Federal legislation on price-fixing states that sellers must set prices after talking to customers and competitors.

Posh Collections introduced a new watch to appeal to upscale consumers. The company will most likely use a(n)________ strategy.

The Sherman Act, Clayton Act, and Robinson-Patman Act are all federal laws that were initially adopted to curb the formation of ________.

In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities.

When a manufacturer offers a ________, a customer buys a product from a manufacturer's dealer within a specified time period, and the manufacturer then sends the customer a check.

Explain competition-based pricing.

Computer World sells laptops separately from accessory products like docking stations, anti-virus software, and external hard drives. This is referred to as ________ pricing.

Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price.

Unlike the other marketing mix elements, price plays a minor role in creating customer value and building customer relationships.

Which of the following sets the lower limit for a product's pricing?

Retailers like Walmart and Target carry less-expensive versions of established brand name products or new lower-price lines. They have adopted a ________ pricing strategy.