Exam 12: Pricing Concepts and Management

The types of prices that appear most often in ads are ___; while the types of prices that occur least often in ads are ____ prices.

You are head of sales and marketing for your firm and you are meeting with the CEO to establish pricing objectives for the upcoming product year. Which of the following factors are you going to consider as you establish your firm's pricing objectives?

The more experience the customer has with a product, the more he or she relies on external reference prices.

Westin Hotels, Inc. has an objective of achieving a 25 percent return from its overall sales. This is an example of a ____ pricing objective.

Steinway produces concert grand pianos, often using the custom materials and designs desired by a specific customer. The average price of these pianos runs about $50,000 depending on the exact piano. What type of pricing does Steinway most likely use for these pianos?

What a price means or what it communicates to customers is called

Competition-based pricing is important if competing products are almost homogeneous or if price is the key variable in the marketing strategy.

When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ____ pricing occurs.

Which type of pricing objective can reduce a firm's risk by helping to stabilize demand for its products?

Which of the following statements is true about marginal analysis?

Which of the following statements is true about the determination of a specific price for a product?

If REVO sets the price for its sunglasses at $240, it is most likely using _____pricing to convey ______.

When a seller's costs are usually determined during or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price, an organization is using ____ pricing.

During July and August, Lakewood Links Golf Course, located in South Carolina, offers weekday rates of $13 for a round of golf with a cart. During the rest of the year, the weekday rates are between $25 and $35. This is an example of the use of

A product is a price leader when

Lexmark sells some of its color printers for about $100, but the refill cartridges cost over $30 each. Lexmark's pricing strategy would be best labeled as

Identify and describe the major factors that affect pricing decisions.

When a satellite dish company uses bundling to combine phone, dish, and broadband Internet access prices, it is attempting to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock." This is an example of using a ____ pricing strategy.

Tiffany would like to start a small, in-home baking business. She often makes baked goods for friends and family, but usually mixes the ingredients by hand. Tiffany is expecting to be baking larger batches than she normally does and thinks a stand mixer would be a good investment. She looks online at KitchenAid stand mixers and sees that the Pro 600 Stand Mixer features a six quart stainless steel bowl, several stainless steel attachments, and a 575-watt motor. The Pro 600 mixer is priced at $449. KitchenAid sells a variety of other stand mixers, but most have nylon coated attachments and lower-wattage motors. Those are priced between $259 and $329. Tiffany really wants the Pro stand mixer given that it has the most desirable and versatile features. KitchenAid is utilizing which type of pricing strategy?

Breyer's produces a variety of ice cream flavors and lines of varying qualities. The higher quality ice cream varieties are priced higher than the basic ones. Breyer's is using ____ to price its ice cream.