Exam 9: Pricing: Understanding and Capturing Customer Value 

Market penetration makes sense when a product's quality and image must support its higher price.

Price elasticity is a measure of the sensitivity of demand to changes in price.

Explain product line pricing. Provide an example.

There is no true substitute for coffee. If the price goes from $8 to $12 for a package of k-cups due to a coffee bean shortage, demand will remain relatively unchanged. This is an example of demand elasticity.

Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called costs because the total Changes based on the number of units produced.

NerdHerd Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as pricing.

Which group is most likely offered functional discounts by manufacturers?

Which of the following sets the price floor lower limit for a product's pricing?

Price bundling promotes the sales of products consumers might not otherwise buy, but the combined price must be low enough to get them to buy the bundle.

Sellers are prohibited from using predatory pricing.

uses buyers' perceptions of what a product is worth as the key to pricing.

is the only element in the marketing mix that produces revenue.

The first Canadian Tire store opened in 1922. Since the early 21st century, its strategy has been updated to capture a larger market share by offering lower everyday prices to attract a large number of buyers and win a large market share. This is referred to as .

When Nabisco offers to cover half the cost of all local advertising for supermarkets that sell Oreo Cookies, the company is granting .

pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk.

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

Providing extra amenities to differentiate and support high-priced products is referred to as _ pricing.

Pricing strategies usually remain the same as a product passes through its life cycle.

The Fashion Store, a new startup, sets product prices so that revenues will equal manufacturing and marketing costs. The pricing strategy used by the company is referred to as pricing.

Which of the following is an economic factor that affects the pricing decisions of a company?