Exam 12: Pricing Concepts and Management

When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called

Reference pricing is

Which factor is least likely to affect pricing decisions?

To gain market share, when Hyundai first entered the U.S. car market it did so with a comparatively low pricing strategy. One of the negative side effects of making this pricing decision is

Grocery stores that position their less expensive, private brands next to more expensive, well-known manufacturer brands on the shelf are using the concept of reference pricing.

The ____ prohibits price fixing among firms in an industry.

Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because

For most products, the quantity demanded goes up as the price goes down.

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing.

If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point?

Scenario 12.3 Use the following to answer the questions. Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department stores. The new line would be positioned as a more distinctive brand than the typical glasses sold through department stores, and would be priced higher than other brands in the store, but a lower price line than the current Ray-Ban lines that are sold through more selective stores. In determining the price for this sunglass line, Ray-Ban wants to gather information about all brands sold in department stores and about customers' perceptions of those brands. Refer to Scenario 12.3. Given Ray-Ban's plan for positioning the new sunglass line, they should use a ____ strategy when introducing their new product.

A deduction from list price for purchasing large quantities aggregated over a stated period of time is a

The pricing of Clinique makeup considerably higher than brands such as Cover Girl, Revlon, and Maybelline is used to communicate ____, which is the company's primary pricing objective.

Maintaining or increasing market share

Mars Petcare is one of the world's largest pet food manufacturers.  If the strategic goal for Mars Petcare in the coming year was to ___________ in North America, it should use temporary price reductions.

What are some issues to consider when determining a specific price?

It is usually easy to obtain an accurate price list for a competitor's products.

Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's ____ objectives and ____ objectives.

Differential pricing is effective mainly when focusing on only one market segment.

Sony management decided to use skimming as a pricing strategy for its newest line of high-definition television (HDTV) sets. It should be aware that this strategy does not