Exam 9: Developing New Products and Managing the Product

In a retail context,the practice of offering selected items at or below cost to entice customers into the store and with an intention of making money on the shoppers' other purchases during that store visit is known as ________ pricing.

________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.

During difficult economic times,companies are often tempted to cut prices.However,any decision to cut prices should raise a number of important questions.Which of the following is NOT a question that would normally be considered when confronted with a decision to lower prices?

Overhead cost is another term for variable cost.

Value-based pricing is being used when costs vary directly with the level of product.

________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

The simplest pricing method is ________.

The fact that a meat pie cost three times more at the AFL Grand Final than at suburban Sam's Café is an example of ________.

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

In the laundry detergent category,Unilever markets a number of premium brands including Omo and Drive.In addition,it markets the low-priced alternative Surf,whose main role is to compete with the budget brands and protect the integrity of the Unilever's premium brands.Surf is best described as a ________.

________ that influence pricing decisions include the nature of the market and demand.

________ uses buyers' perceptions of what a product is worth,not the seller's cost,as the key to pricing.

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

Price setting is usually determined by ________ in small companies.

Segmented pricing goes by many names.Airlines,hotels and restaurants call it ________ and practise it religiously.

Prices have a direct impact on a company's bottom line.

When there is price competition,many companies adopt ________ rather than cutting prices to match competitors.

All of the following are examples of segmented pricing,EXCEPT which one?

Following a recent rise in energy costs,a home-owner has decided to invest in a solar energy system but has no real idea of costs.Nevertheless,based on what she has read and heard about solar panels,the home-owner decides that she is prepared to pay between $3000 and $4000 for a 1.5 Kw inverter.This price range represents the home-owner's reference prices.

Under which type of geographic pricing strategy does each customer pay the exact freight for the product from the factory to its destination?