Exam 10: Pricing: Understanding and Capturing Customer Value

A restaurant wants to use value-based pricing. It knows the costs of the ingredients in the food. It must also factor in ________ in determining customer satisfaction and value.

In which situation is the market dominated by one seller?

Departments or managers that have an influence on pricing include sales managers, finance managers, accountants, and ________.

Which of the following involves introducing less-expensive versions of established, brand name products?

Briefly discuss monopolistic competition.

Which of the following is true about the demand curve?

Why is price considered one of the most flexible elements of the marketing mix?

Department stores that practice everyday low pricing typically provide frequent sale days, early-bird savings, and bonus earnings for store credit-card holders.

The perceived value of different product offers can be reasonably assessed by ________.

Variable costs change directly with the level of production.

A company will be at an advantage even if it costs more than its competitors to make and sell a similar product.

Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This exemplifies ________.

As a manufacturer increases the price, ________.

Markup pricing is used when a firm tries to determine the price at which it will break even or make the target return it is seeking.

Refer to the scenario below to answer the following question(s). Alden Manufacturing produces small kitchen appliances-blenders, hand mixers, and electric skillets-under the brand name First Generation. Alden attempts to target newlyweds and first-time home buyers with this brand. Considering that most young households have limited financial resources, Alden attempts to engage in target costing. "In doing this," says Milt Alden, the co-founder of Alden Electronics, "we have better control over keeping price right in line with customers." Alden manufactures a three-speed blender, its top seller, along with a five-speed blender. The hand mixers are manufactured in two variants-a small handheld mixer with two rotating beaters and another that comes with an optional stand and an attached mixing bowl. Alden's temperature-controlled skillets are manufactured in a single style with three color options. "Our product offerings are narrower," Milt Alden added, "but our line workers know each product like the back of their hands. This allows us to produce superior products while holding our prices low. -Milt Alden uses which of the following strategies for pricing his products?

________ refers to a measure of the sensitivity of demand to changes in price.

John assured his venture capitalists an earning of 25-percent return on equity when he began his IT startup. In order to achieve this result, he will most likely use which of the following pricing approaches?

In industrial markets, ________ typically has the final say in setting the pricing objectives and policies of a company.

Which of the following is true of value-based pricing?

In industries in which pricing is a key factor, ________ often set the best prices or help others in setting them.