Exam 21: Setting Prices

A product that has more features than those of its competition,or that is perceived to be of higher quality,warrants using which type of pricing strategy?

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers,it should use

A marketer is usually in a better position to establish prices when it knows the prices charged for competing brands.

Maria recently put her house on the market at an asking price of $260,000.She realizes,however,that in order to sell the house,she may have to use

Price skimming is designed to yield maximum unit sales volume.

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

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

Scenario 21.1 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 21.1.Ray-Ban has decided to promote the new sunglass line as an "affordable luxury" and plans significant promotional expenditures.With these objectives,which of the following should Ray-Ban use to price its product line?

If General Motors determines that it wants to sell 200,000 Chevrolet Acadias and sets the price at $29,500 because it knows that at that price it will reach that goal,the firm would be using a ____ pricing method.

A major reason why retailers use markup pricing is that it is convenient.

The objective of maintaining or increasing market share depends on growth in industry sales.

A sale that advertised prices "up to 65 percent off" the original price uses

What type of pricing objective would an organization use if it were in a favorable position and desired nothing more?

When products in an industry are relatively homogeneous and price is a key purchase consideration,

Describe,compare,and contrast the three major bases for setting prices.

Services that are performed by lawyers,dentists,or doctors are typically priced using ____;sometimes these prices are not based on the amount of time that is spent in each situation,but are based on a flat fee regardless of the difficulty involved.

How can a marketer use product quality as a pricing objective to influence purchasing decisions?

Odd-even pricing is

Marketers improve their ability to establish prices appropriately when

If local Shell gasoline stations look at BP stations' prices as the primary method of determining its own prices,Shell is using ________