Exam 14: Developing Pricing Strategies and Programs

An increasing number of companies are basing their prices on the customer's perceived value.Explain the concept of "perceived value" and identify the key to pricing in this manner.

A major circumstance provoking price increases is ________.

The popularity of "early-bird" specials at restaurants is an example of what type of price discrimination

Although consumers may have fairly good knowledge of the range of prices involved,very few can accurately recall specific prices of products.

The key to effectively using perceived-value pricing is always to deliver the same or equal value as your competitors.

The price a firm charges for its product does not affect where it chooses to position the product in the marketplace.

When is price discrimination legal

What is market skimming and where might you see market-skimming pricing practiced in consumer goods

Texas Instruments builds a large plant to produce a great quantity of products,hoping that as prices decline,sales volume increases and thus costs decline.This market-penetration pricing is dependent upon three conditions existing in the marketplace.Which one of the following is NOT one of these conditions

In target-return pricing,the firm determines the markup required and adds that amount to the fixed cost of the product.

Consumers often rank brands according to price tiers in a category.

Companies pursue survival as their major objective if they are plagued with ________.

The price elasticity of demand rarely varies between the short and long term.

In ________ pricing,the company decides how to price its products to different customers in different locations and countries.

Prior research has shown that although consumers may have fairly good knowledge of the range of prices involved,surprisingly few can recall specific prices of products accurately.When examining products,consumers often employ reference prices.List the possible prices consumers use as their "reference."

Research has shown that consumers tend to process prices in a "left-to-right" manner rather than by rounding.With this knowledge,which of the following prices would seem to be a better physiological price

________ sets a ceiling on the price the company can charge for its products.

Auction-type pricing is becoming very popular due to the Internet.The three types of auction pricing include sealed-bid auctions,descending bids auctions,and ________.

A firm first decides where it wants to position its market offering.A company can pursue any of five major objectives through pricing.Which of the following is NOT one of these objectives

The last price paid,competitors' prices,and the expected future price all serve as customer ________.