Exam 9: Pricing: Understanding and Capturing Customer Value

When using product line pricing, a firm sets one price for all products in the line based on average manufacturing costs.

A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth.

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment is $35. But the combo price is $50. This is referred to as ________ pricing.

Some companies deemphasize price and use other marketing mix tools to create non-price positions in the marketplace.

Target return pricing is a variation of break-even pricing.

Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product?

There are more than 50 blueberry farmers in Shammonton, New Jersey, that grow, package, and distribute the same quality blueberries. An individual farmer cannot charge more than the going market price per unit without the risk of losing business to the other farmers. This is an example of ________.

Penny Bank, a discount store, is highly competitive. When entering a new market, Penny Bank often cuts prices so deeply that it sells below costs, effectively pushing smaller retail stores with less purchasing power out of the market. In this case, Penny Bank is using ________.

Metro Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing.

________ pricing occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.

Which pricing mix strategy should be used in relation to saleable scrap materials? How does this strategy function?

Establishing prices for razor blades that must be used with a razor blade system is known as ________ pricing.

When establishing prices, it's important for a manager to understand that "good value" is not the same as ________.

The first generation Apple iPod was introduced in 2001 and sold for $500. The following year a mini version was introduced for $250. Apple initially used a ________ strategy to price their digital music innovation.

Universal Appliance prices its refrigerators at five distinct price levels based on finish, style, capacity, and features. They range from $799 to $9,500. This is an illustration of price steps.

When Nabisco offers to cover half the cost of all local advertising for supermarkets that sell Oreo Cookies, the company is granting ________.

Distinguish between market-skimming pricing and market-penetration pricing.

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency?

If demand is elastic rather than inelastic, sellers typically consider increasing their prices.

The Fashion Store, a new startup, sets product prices so that revenues will equal manufacturing and marketing costs. The pricing strategy used by the company is referred to as ________ pricing.