Exam 12: Developing Pricing Strategies and Programs

________ pricing takes into account a host of inputs,such as the buyer's image of the product performance,the channel deliverables,the warranty quality,customer support,and attributes such as the supplier's reputation,trustworthiness,and esteem.

The key to effectively using perceived-value pricing is to deliver value that is on par with your competitors.

Matt's retail store offers all its products at $2 less than its competitors throughout the year.The store never runs any promotional campaigns or offers any additional special discounts.Matt's retail store is following a(n)________.

Price is one of the two elements of the marketing mix that produces revenue.

When museums charge a lower admission fee to students and senior citizens,then this form of price discrimination is known as ________.

A Japanese firm is ready to sell its recent technological innovation to the U.S.government.But it has asked for 80 percent in cash and the rest in mica.The Japanese firm is looking to enter into a(n)________ with the U.S.government.

A company must make payments each month for rent,heat,interest,and salaries.These are ________.

In a(n)________,the buyer announces something he or she wants to buy,and potential sellers compete to offer the lowest price.

In the case of prestige goods,the demand curve sometimes slopes upward.

Total costs consist of the sum of the fixed and variable costs for any given level of production.

Although consumers may have fairly good knowledge of the range of prices involved,very few can accurately recall specific prices of products.

________ are granted for turning in old item when buying a new one.

When Apple introduced its iPhone,it was priced at $599.This allowed Apple to earn the maximum amount of revenue from the various segments of the market.Two months after the introduction,the price has come down to $399.What kind of a pricing did Apple adopt?

Which of the following is the first step in setting a pricing policy?

After estimating the demand and costs associated with alternative prices,a company has chosen to price its product in such a way that it gains the highest rate of return on its investment.The company is looking to ________.

________ reward dealers for participating in advertising and sales support programmes.

Companies strive to maximize their current profits if they are plagued with overcapacity,intense competition,or changing consumer wants.

When Alan bought his car,the bank gave him 24 months to repay his car loan.But when Alan made a request to increase the time frame to 36 months,the bank granted the extension.The bank was willing to offer Alan a ________.

For price discrimination to work ________.

In a compensation deal,the seller sells a plant,equipment,or technology to another country and agrees to accept as partial payment products manufactured with the supplied equipment.