Exam 14: Pricing Concepts for Establishing Value

Brad always buys and uses Nike brand golf balls.If he finds a Titleist or Callaway ball in the rough,he gives it away.Brand-loyal golfers like Brad allow Nike to charge a higher price and not lose many sales.By building a strong brand,Nike has effectively

Dynamic pricing is also referred to as _______ pricing.

_______ measures consumers' sensitivity to price changes.

Suppose that a friend asks you to drive him to the airport this weekend so he can catch a flight.He pays you for the gas used driving to the airport,and for the cost of parking the car at the airport while you help him in with his bags.He then declares that you are now "even," since he has fully compensated you for any costs you incurred in helping him get to his flight.From your perspective,what aspects of the "price" of taking your friend to the airport has he omitted?

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?

Health clubs often use a low,introductory offer price to get people to join their club.These low prices represent a _______ pricing strategy.

Julia's is an upscale women's clothing store.Prices are based on customers' beliefs about the value of the clothing.The store focuses on a limited target market and provides excellent customer service.Julia's is using a _______ pricing strategy.

Many years ago Honda's Accord and Ford's Taurus were the two top-selling cars in the United States.As the year was coming to an end,Ford cut the price of the Taurus,hoping to outsell the Accord and allow Ford to claim that "Taurus is the best-selling car in America." Ford was using a _______ pricing strategy.

What five components should be taken into consideration when a company is developing its pricing objectives?

In general,prices should not be based on costs because

A "no haggle" pricing policy is a type of _____ pricing strategy.

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

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?

A customer orientation toward pricing implicitly invokes the concept of

The more substitutes that exist in a market,

Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell.Naomi is using a _______ pricing strategy.

What situation is occurring if a 1 percent decrease in price results in more than a 1 percent increase in quantity demand?

Dynamic pricing is also referred to as individualized pricing.

Rarely is the lowest-price product offering the dominant brand in a given market.

A demand curve shows the relationship between _______ in a period of time.