Exam 11: Pricing Strategy

_____ estimates value as the perceived quality buyers obtain per unit of price.

What are the steps in selecting a pricing strategy?

A low-passive pricing strategy:

Which of the following distribution approaches is most likely to call for more competitive pricing?

 Charging a very low price for a product with the intent of driving competitors out of business is referred to as _____.

 Explain the role of price in the distribution strategy.

Give an account of the impact of emerging markets on pricing.

Lowering prices generally eliminates potential price wars.

 Price strategy is always related to competition whether firms use a higher,lower,or equal price.

 Explain the various roles of price in the marketing program.

Which of the following is the first step in selecting a pricing strategy?

 The underlying logic of economic value modeling (EVM) is that using the price/benefit ratio is a more realistic view of value than "dollar worth of benefits minus price."

_____ is the percentage change in the quantity sold of a brand when the price changes,divided by the percentage change in price.

A high-active pricing strategy:

 Competitive bidding is an example of demand-oriented approach of pricing.