Exam 21: Setting Prices

Pricing strategies and methods

Grocery stores use negotiated pricing strategies.

Scenario 21.2 Use the following to answer the questions. Glenwood Pet Hospital is considering implementing a new pricing strategy for its veterinarian services.After reviewing the previous three years' revenue,Glenwood finds that most of its customers bring their pets in for the required annual vaccinations and then only if the animal is ill.Glenwood's objective is to generate more income per customer on an annual basis.The hospital has previously priced its services by charging a flat fee for the office visit,a fee for each vaccine,and a fee for each type of examination beyond the basic office visit.Most customers pay the flat office fee and a fee for a rabies vaccine.Glenwood is now considering a new plan where the pet owner would pay one fee that would cover an office visit,the required rabies vaccine,and additional vaccines that prevent heartworm,kennel-cough,and fleas.Glenwood hopes to encourage the pet owners to view their pet's health as part of a prevention program,rather than a one-time annual visit. -Refer to Scenario 21.2.Glenwood is considering a markup pricing basis,with the cost for office visit plus vaccines at $45.If Glenwood were to add a markup of 33.3 percent of the costs,its price would be ____.

Penetration pricing is one new-product pricing approach that provides the most flexible introductory price.

All of the following are psychological techniques except

Explain the ethical implications of professional pricing.

Most pricing objectives based on ____ are achieved by trial and error because not all cost and revenue data are available when prices are set.

Differential pricing means different buyers pay different prices for the same quality and quantity of product.

Marketers at organizations engaged in nonprice competition

When a satellite dish company uses bundling to combine phone,dish,and broadband Internet access prices,it is attempting to influence a consumer's perception of price to make a product's price more attractive and reduce "sticker shock." This is an example of using a ____ pricing strategy.

The management at Allied Electronics is having difficulty in raising the introductory price on system components to cover the increased costs of producing the sensing devices for home security systems.Apparently,Allied used a(n)____ strategy in pricing these components.

If Wrigley set its pricing objective as attaining 38 percent of the chewing gum market,what else would be needed to make this a true pricing objective?

The local florist advertises a discount on arrangements during the month of April because the anniversary of the store's opening is in April.This is an example of special-event pricing.

Under Armour is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales.

For custom-made equipment or commercial construction projects,which pricing method is most likely used?

Identify and describe the four types of product-line pricing.

The federal government often uses ____ pricing when it grants defense contracts.

A penetration pricing strategy is particularly appropriate when demand is

The effectiveness of demand-based pricing often depends on a marketer's ability to determine all the costs associated with the product.

Amtrak is considering two pricing strategies for its service.One is to price its train tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel,which illustrates ____ pricing.The second is to price its train tickets so that the further away the travel date,the greater the discount,which is best described as ___