Exam 9: Pricing: Understanding and Capturing Customer Value 

The Royal Ontario Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called pricing.

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

What is customer value-based pricing? Describe the two types of value-based pricing.

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product?

The Vitamin Shoppe sells natural vitamins and supplements. Product prices are adjusted frequently to meet the needs of individual customers. For example, long-time customers receive discounts. This strategy is most likely an example of _ pricing.

If consumers perceive less value relative to competing products, a company should attempt to change customer perceptions to justify a higher price.

pricing refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.

Distinguish between market-skimming pricing and market-penetration pricing.

Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is Using a approach to price the new moisturizer.

Netcorp, an Internet service provider, charges its users a fixed rental fee for its basic package, which has a download limit. If a user exceeds this download limit, an additional fee is charged for every download. In this case, the firm's pricing strategy is referred to as pricing.

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

Universal Appliance prices its refrigerators at five distinct price levels based on finish, style, capacity, and features. They range from $799 to $9,500. This is an illustration of price steps.

An airline runs a 6-month promotional program where all baggage fees are waived. It is using a cost-based pricing strategy.

pricing is an approach whereby a firm tries to determine the price at which it will break even or earn the profit it is seeking.

What external factors affect the pricing decisions made by organizations?

Captive-product pricing refers to setting prices across an entire product line.

Computer Works is a computer accessories manufacturer based in Brazil. All customers in South America pay the same freight charge, $20, when they order products from the company. All customers in North America pay a freight charge of $50. The company's pricing strategy is referred to as pricing.

Consumers rely less on price to judge the quality of a product when they .

Computer World sells laptops separately from accessory products like docking stations, anti-virus software, and external hard drives. This is referred to as _ _ pricing.

Dynamic pricing is particularly suitable for Internet-based companies like Amazon who want to be responsive to shoppers' desires and marketplace changes.