Exam 9: Pricing: Understanding and Capturing Customer Value

Compare pure competition with monopolistic competition conditions.

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

Companies bringing out a new product can choose between two broad strategies: market-skimming pricing and market-penetration pricing.Distinguish between the two.

Swatch surveyed the market and identified an unserved segment of watch buyers.Using these results,they created a watch at a price consumers were willing to pay.The unorthodox order of this marketing mix decision is an example of ________.

The demand curve shows the number of units the market will buy in a given time period at similar prices.

Costs that change directly with the level of production are referred to as ________ costs.

Value-based pricing means that the marketer cannot design a product and marketing program and then set the price.

Break-even pricing,or a variation called ________ pricing,is when the firm tries to determine the price at which it will break even or make the profit it is seeking.

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products,the manufacturer is able to reduce the main product's price to make it more competitive.

Under ________,the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies.

When a firm varies its price by the season,month,day,or even hour,it is using ________ pricing.

Product costs set the ceiling for a product's price,whereas consumer perceptions of the product's value set the floor for prices.

When Glow Gift Card Shop offers a price reduction to customers who buy Christmas cards the week after Christmas,it is giving a(n)________ discount.

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

________ involves selling a product or service at two or more prices,where the difference in prices is not based on differences in costs.

Rent,electricity,and executive salaries are examples of ________ costs.

Deceptive pricing occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.

Compare the practices of price-fixing and predatory pricing,explaining why each is prohibited by law.

Which pricing mix strategy should be used in relation to saleable scrap materials,and how does this strategy function?

The price that a company should charge in a specific country depends on many factors,including economic conditions,competitive situations,laws and regulations,and the nature of the wholesaling and retailing system.