Exam 9: Pricing: Understanding and Capturing Customer Value 

Penny Bank, a discount store, is highly competitive. When entering a new market, Penny Bank often cuts prices so deeply that it sells below costs, effectively pushing smaller retail stores with less purchasing power out of the market. In this case, Penny Bank is using .

Radox, a luxury watch brand, identifies a market segment that is willing to pay premium prices for its watches, and Radox managers select an ideal selling price. Managers then determine the costs to create watches that meet the ideal selling price. The company's pricing approach is referred to as .

The Competition Act seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade.

When demand hardly changes with a small change in the price of a product, the demand for the product is best described as .

BC Place, home of the Vancouver Whitecaps FC charges different prices for seats in different areas of the stadium, even though each seat costs the same for the owners of the stadium. What is this form of pricing called?

Unlike the other marketing mix elements, price plays a minor role in creating customer value and building customer relationships.

An important consideration when determining what price to charge in a specific country is the nature of the wholesaling and retailing system in that country.

A pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth.

Explain the concept of price elasticity.

Retailers like Winners and Marshalls carry less-expensive versions of established brand name products or new lower-price lines. They have adopted a pricing strategy.

A break-even chart shows the total cost and total revenue expected at various sales volume levels of a product.

Break-even pricing involves setting prices based on competitors' strategies, costs, prices, and market offerings.

There are more than 200 wild blueberry producers in Nova Scotia. An individual farmer cannot charge more than the going market price per unit without the risk of losing business to the other farmers. This is an example of _.

A firm considering a price change must worry about the reactions of its competitors as well as those of its customers.

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency?

Establishing prices for razor blades that must be used with a razor blade system is known as pricing.

Wilkinson & Company sells plumbing supplies across Canada. Wilkinson uses Winnipeg as its central location for determining freight costs regardless of the city from which products are actually shipped. For example, a Vancouver customer pays the freight cost from Winnipeg to Vancouver even if the goods are shipped from Calgary. Wilkinson most likely uses pricing.

The National Tree Company offers resellers half-price reductions on artificial Christmas trees if they purchase them in July. This is an example of a _ .

is the sum of all the values that customers exchange for the benefits of having or using a product or service.

Pricing a product based on consumers' reference prices is referred to as pricing.