Exam 14: Developing Pricing Strategies and Programs

If consumers were largely indifferent to a $0.10 increase in the price of a gallon of milk,the rise can be said to fall within customers' ________.

How do EDLP and high-low pricing strategies affect consumer price judgments

In the case of prestige goods,the demand curve sometimes slopes upward.

Explain the difference between everyday low pricing (EDLP)and high-low pricing.

In ________,the retailer charges higher prices on an everyday basis but then runs frequent promotions in which prices are temporarily lowered below the EDLP level.

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 ________.

When firms charge different prices to different consumer groups (senior citizens for example),this is a form of price discrimination and is illegal.

When a retailer puts a sign on a product that says "reduced" or a retailer puts a sign on a product that says "compare to XXX at $10.00 more," the retailer is encouraging what kind of pricing psychology for its shoppers

The seller sells a plant,equipment,or technology to another country and agrees to accept as partial payment products manufactured with the supplied equipment in a ________.

Explain how Armani uses consumer psychology to charge at least 20 times more for a black T-shirt than do Gap or H&M.

An increasing number of companies now base their price on the customer's ________ of their products.

Price elasticity depends upon the magnitude and direction of the contemplated price change.

Your competitor has reduced prices on his entire line of products.You can interpret these price cuts by assuming that your competitor is trying to gain market share,is doing poorly and wants to increase revenue quickly,or ________.

________ differ greatly depending upon the level of production.

The quantity demanded of your firm's product increased only 5% when the price of each unit was reduced by 33%.This is an example of what type of demand

The three major considerations in price setting are: costs set the floor price; ________; and customers' assessment of unique features establishes the price ceiling.

Purchase decisions are based on how consumers perceive prices and what they consider to be the ________ price-not the marketer's stated price.

A quantity discount is a price reduction given to those who buy a large volume of the manufacturer's products.

Consumers are "price takers" and accept prices at "face value" or as given.

Research on reference prices has found that "unpleasant surprises"-when perceived price is lower than the stated price-can have a greater impact on purchase likelihood than pleasant surprises.