Exam 9: Pricing: Understanding and Capturing Customer Value

The price that a company should charge in a specific country depends on the nature of the wholesaling and retailing system in that country.

Value-based pricing is the reverse process of ________ pricing.

Combining several products and offering the collection at a reduced price is referred to as ________ pricing.

Which of the following is an external factor that affects pricing decisions?

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

Explain how companies that market their products internationally decide what prices to charge in different countries.

Chef Brown's Health Food Store sells nutritional,energy-producing foods.Product prices are adjusted frequently to meet the needs of individual customers and situations.For example,long-time customers receive discounts.This strategy is most likely an example of ________ pricing.

Setting a price for products that must be used along with a main product is known as ________ pricing.

Glow,a gift card store,offers a price reduction to customers who buy Christmas cards the week after Christmas.In this case,the store offers a ________.

Explain the concept of price elasticity.

If demand hardly changes with a small change in price,the demand is said to be elastic.

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

The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ________.

Wilkinson & Company sells plumbing supplies across the United States.Wilkinson uses Chicago as its central location for determining freight costs regardless of the city from which products are actually shipped.For example,a Dallas customer pays the freight cost from Chicago to Dallas even if the goods are shipped from Dallas.Wilkinson most likely uses ________ pricing.

In small companies,prices are typically set by the sales or marketing departments.

A company designs what it considers to be a good product,calculates the expenses of making the product,and sets a price that adds a standard markup to the cost of the product.This approach to pricing is called ________ pricing.

________ prices are carried in buyers' minds and used when looking at a given product.

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 ________.

________ costs are also known as overhead.

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