Exam 9: Pricing: Understanding and Capturing Customer Value

If demand changes greatly with a small change in product price,the demand is inelastic.

When a manufacturer offers a ________,customers buy products from manufacturers' dealers within a specified time period and the manufacturer sends the customer a check.

When consumers cannot judge the quality of a product because they lack information or skill,they are likely to perceive a higher-priced product as having higher quality.

Chef Brown's Health Food Store sells nutritional energy-producing foods.The price of the products sold varies according to individual customer accounts and situations.For example,long-time customers receive discounts.This strategy is an example of ________.

Explain the concept of price elasticity.

The Sherman,Clayton,and Robinson-Patman Acts are all federal laws that were initially adopted to curb the formation of ________.

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

A company sets not just a single price,but rather a ________ that covers different items in its line that change over time as products move through their life cycles.

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: ________.

Target costing reverses the usual marketing process and instead starts with an ideal selling price based on customer value considerations and then targets costs that will ensure that the price is met.

Producers use captive product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product.

In Sao Paulo,Brazil,there are more than 20 stores specializing in selling the same quality and brand of wheat products located in one street.An individual seller cannot charge more than the going price without the risk of losing business to the other stores.This is an example of what type of market?

________ is the amount of money charged for a product or service.

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

Andy Candy Stores prices its candy displays at 10 different price levels,ranging from $2.00 per pound to $4.95 per pound.This is an illustration of price steps.

Freight-absorption pricing is used for market skimming and to hold on to monopolistic markets.

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

Price setting is usually determined by ________ in small companies.

________ falls between FOB-origin pricing and uniform-delivered pricing.

With an understanding of price elasticity,sellers should know that the less elastic the demand for their product is,the more advantageous it is for them to ________.