Exam 14: Pricing Concepts for Establishing Value

If the price for a product increases, the demand for the complementary product will

A reference price might be considered deceptive if

In ________ many firms provide similar products that are considered substitutes for each other.

Differentiate between the four levels of competition and offer examples of each type.

If all three grocery stores in town decide to charge the same price for a gallon of milk, what type of pricing tactic is being used?

The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the

What methods might a firm use when pricing based on a profit orientation and how do they differ?

In one year, the Hotel by the Shore incurred $100,000 in fixed costs. Because the hotel booked 10,000 room nights, its total variable cost is $100,000 (10,000 room nights × $10 per room). Thus, its total cost is

How can a company find its way out of a market characterized by pure competition?

The price elasticity of demand for a teeth-whitening kit is −1. The market for this product is considered

Consumers generally believe that ________ is one of the most important factors in their purchase decisions.

Bernard's firm has set corporate direction to become one of the leaders in each of its significant market segments. It was Bernard's job to examine the firm's pricing strategy to determine how to maximize market share, even at the expense of profits in the short run. What kind of company objective would guide Bernard's effort?

Price is the only part of the marketing mix that does not generate costs.

Because there are many firms with similar products in purely competitive markets,

According to a typical demand curve, the higher the price,

In a market with ________ there are many firms providing differentiated products.

There are many options available to consumers when it comes to breakfast cereals. So, if Kellogg's significantly increases the price of Rice Krispies, consumers are more apt to buy alternate cereals instead. This illustrates which concept?

Developing a good pricing strategy is essential to the financial well-being of a firm. Even though a firm has an excellent strategy, what are continuing threats to the strategy?

Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how ________ impacts demand for products.

Why might it be considered more fun and challenging for a marketer to be part of a market characterized by monopolistic competition than be part of one characterized by pure competition?