Exam 11: Pricing Decisions: Objectives, Strategies and Tactics

A local store owned by a large pizza chain decided to lower its prices for an extended period in an attempt to run the local independent pizza store out of business. This practice is known as

Outline the conditions that are conducive to penetration pricing.

A small hardware store files a complaint with the Competition Bureau concerning alleged predatory pricing practices of a mega-retailer of hardware in the same market. Chances are that there will not be a conviction because

Prices come in many different forms. Banks offer many services for which they charge a "price."Describe four examples of pricing a bank might charge for its services.

What is a cash discount? Explain how a cash discount works and provide two examples.

The effects of a price change on volume demanded must be factored into a pricing strategy.

Once a product is sold to a distributor, control of pricing decisions is lost. How do manufacturers encourage channel members to charge prices that are consistent with the manufacturing organization's marketing strategy?

Which of the following pricing strategies is best suited for a revolutionary new household appliance that has patent protection and for which demand is expected to be inelastic?

Establishing price ranges of $100, $300, and $400 is an example of unit pricing.

A supplier pays a retailer a shelving allowance for the purpose of securing shelf space.

"To increase market share from 5% to 8%"is an example of a profit maximization objective.

Explain how the use of a manufacturer's suggested list price can be misleading. What act and specific law relates to this?

Unit pricing makes it easier to shop for similar goods with varying prices and pack sizes.

From a marketing perspective, ________ contributes to profits and revenues.

When Frito-Lay reduced the size of a bag of chips, it was practising

Setting a price of $500 per plate at a political fundraiser is commonplace. Explain why the strategy underlying this high price is more than just raising funds for the party in question.

Instead of allowing a discount on its invoice, an electronics manufacturer keeps a record of the volume of stereo components purchased and issues the retailer a cheque at a later date. This practice is called a

In a rising cost environment, rather than increase price the organization could search for and implement cost reductions.

When a firm buys greater quantities of raw materials and parts,

Apple uses a skimming strategy because it relies on product innovation to justify a premium price.