Exam 10: Managing Price and Customer Cost Perceptions

How does the stage in the product lifecycle influence pricing?

If you go to a fancy steak house and see a hamburger on the menu for $1.19 or if you go to a fast food restaurant and see a hamburger on the menu for $24.00, you'd think something was not right. Marketers understand you are comparing those posted menu prices to your own

When pricing existing products, the marketer must make three basic sets of decisions: the basis for setting the price, if the prices will change very much, and

Assume you were tasked with calculating the outcome for the following question: How much profit or loss are you making if you have 15% market share? Why is this calculation important? Explain.

The first step in setting a base price for a product is

Identify and discuss the conditions that must be met in order for penetrative pricing to be effective.

One of the major problems marketers face with pricing is that although there are many "wrong" prices, there isn't one "right" price.

Taking into consideration how the price of one product might influence the perception and price of another product is called price

One of the fundamental "building blocks" of pricing is an estimate or understanding of how many units can be sold in a given period-usually a year. This estimate is known as expected unit sales or

Some companies will drop prices to a point where competitors may question their motives. Although federal law prohibits predatory pricing and similar actions, the situations are rarely prosecuted because it is difficult to prove and

All of the following are considered fixed costs, EXCEPT

Daniel and Sarah were going to a movie, and they started discussing the way the theater offered discounts to senior citizens before 6:00 pm. Sarah commented, "That's discrimination. They see the same movie in the same seats. Why should they pay less?" Which of the following is NOT one of the explanations as to why this is not treated as discrimination?

Chris and Lynn were watching sales slumping for their line of expensive, exotically-scented candles, and they had narrowed down their options to adjusting the price. Chris suggested the best thing to do would be to raise prices. Lynn thought Chris wasn't thinking clearly, but increasing prices to stimulate sales for luxury items is known as

Rick had solid information about the internal costs, volume and objectives he needed to set prices for the next year. Before he can set prices, he also needs to understand what is going on the market in general. He will examine the competitors' overall pricing, and he will need to research consumer demand for the products to know how the size of the total market and

Consumers are familiar with the Manufacturer's Suggested Retail Price (MSRP), but it might be illegal to sell products at that price.

Which of the following is NOT one of the primary factors that influence price?

What can be said of price spirals considering how they negatively affect businesses?

While marketers must pay attention to the prices charged by competitors and the expectations of customers, the effective way to attract customers at fair prices is to emphasis benefits and non-price elements.

Which of the following is defined as introducing a new product at a relatively low price with the intention of establishing a large market share before competitors can establish themselves?

Businesses in the U.S. often compete on price, and competition can be very tough beyond pricing. Competing on price is an accepted practice in the marketplace and under the law. What is the name of the practice that goes beyond fair competition to drive another business out of the market by dropping prices to an extremely low level with the intention of destroying another business?