Exam 21: Setting Prices

Maintaining or increasing market share

When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of

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 has decided that it is going to offer a special package offer if the prevention plan is purchased within the first 30 days of each year's time for vaccinations. This type of pricing strategy would be an example of

Price leaders, comparison discounting, and special-event pricing are applications of

What is bundle pricing? Give three examples, each one from a different industry.

Which of the following is a requirement for setting pricing objectives?

All of the following are psychological techniques except

Which pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry?

Westin Hotels, Inc. has an objective of achieving a 25 percent return from its overall sales. This is an example of a ____ pricing objective.

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

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

Steinway produces concert grand pianos, often using the custom materials and designs desired by a specific customer. The average price of these pianos runs about $50,000 depending on the exact piano. What type of pricing does Steinway most likely use for these pianos?

Which of the following would be used in setting the price of a new product if considerable competition is expected?

The use of market share as a pricing objective oversimplifies the value of price in contributing to profits.

Odd-even pricing is

A manager at Kohls discovers that Macy's has reduced the price of its children's Levi's from $31.99 to $24.99, according to an advertisement in the Sunday newspaper. She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: $24.99." This is an example of what pricing strategy?

Markup can be stated as a percentage of the cost or as a percentage of the selling price.

When Sharp first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Sharp is called

The decision of Macy's to use even prices such as $60 for a Ralph Lauren Polo is an application of ____; where ____ prices are often used to _____.

A price-leader approach is a pricing approach most often used in supermarkets to attract consumers by giving them special low prices on a few items.