Exam 14: Pricing Concepts for Capturing Value

Describe an oligopolistic competition. Why do price wars sometimes result in this type of competition?

When the price for Blu-ray players dropped, the demand for DVD players went down, based on this, DVD players and Blu-ray players are

Consider a bakery in your community. Ingredients such as sugar and butter would be examples of _____ costs.

Bryce would love to own a Lamborghini someday but he knows if he has to ask how much they cost, he probably can't afford it today. Products like Lamborghini automobiles are most likely to be associated with

French luxury goods manufacturer and retailer Hermès is known for making expensive leather goods. But paying $300,168 for a handbag at auction, which is over the standard retail price of $280,000, is extraordinary, and not for the casual shopper. The handbag is considered a

The more substitutes that exist in a market,

Pricing strategies should be aligned with a firm's overall goals and objectives.

One of the limitations associated with break-even analysis is that

________ products are products whose demands are positively related and as such, they rise or fall together.

An example of an objective set by a sales-oriented company is to institute a company-wide policy that all products must provide for at least an 18 percent profit margin to reach a particular profit goal for the firm.

Which market is most likely to be characterized by oligopolistic competition in the United States?

Because consumers are generally more sensitive to price increases than to price decreases, it is easier to lose current customers with a price increase than it is to gain new customers with a price decrease.

Buying response to a teeth whitening product is considered to be elastic. This would suggest dropping the price would result in:

Marketers should view pricing decisions as an opportunity to create value.

A "no haggle" pricing policy that makes a transaction easier for the buyer is a type of ________ pricing strategy.

If upscale manufacturers of prestige products like BMW autos, Tiffany glass, or Rolex watches offered lower-priced products, what might happen to the demand for their products? Why?

Variable costs change with

A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n)________ price elasticity demand.

The price elasticity of demand for a specific brand of deodorant is 1. The market for this product is considered