Exam 14: Developing Pricing Strategies and Programs

Some of the considerations that companies face when deciding to match a competitor's price decline include the product's importance in the company's portfolio, the competitor's intentions, and the

Psychological discounting involves setting an artificially high price and then offering the product at substantial savings.

What are the different forms of countertrade?

In setting the "price" for their products or services, firms must stop and pause to reflect on the many factors affecting its pricing policy. List these six factors and briefly the subsequent components of each one of them.

The key to perceived-value pricing is to deliver more unique value than your competitors and to ________ this to prospective buyers.

________ occurs when a company sells a product or service at two or more prices that do not reflect a proportional difference in costs.

Auction-type pricing is growing more popular, especially with the growth of the internet. Explain the three major types of auctions and their separate procedures.

Customers are most price sensitive to products that cost a lot or are bought frequently.

How is it that Centrum Vitamins can price their products much higher than their private-label competitors?

When the seller receives full payment in cash and agrees to spend a substantial amount of the money in that country within a stated time period this is called offset.

Many consumers use price as an indicator of ________. Image pricing is especially effective with ego-sensitive products such as perfumes and expensive cars.

When supermarkets and department stores drop the price on well-known brands to stimulate store traffic, this is called

A ________ is offered by a manufacturer to trade-channel members if they will perform certain functions, such as selling, storing, and record keeping.

A factor leading to price increases is overdemand by the market for the company's product.

At 1000 calculators per day, Texas Instrument's factory is running at full capacity. This means that the cost of each calculator is now at its ________ cost.

What are the different types of promotional pricing?

Explain the type of auction found on eBay.

Discount pricing, is when companies adjust their list prices, and give discounts and allowance for early payments, volume purchases, and off-season buying.

As a newly hired marketing associate, you have been given the responsibility to reduce the costs of your product by utilizing a process called "target costing." Explain how you would go about implementing a "target costing" program.

The demand for your product fell 66 percent when the price increased by 50 percent. This is an example of what type of demand?