Exam 9: Pricing: Capturing Customer Value

Companies bringing out a new product can choose between two broad strategies: market-skimming pricing and market-penetration pricing.It is important to select the optimal approach because there's no going back once prices have been established.Discuss the market and environmental indications suitable for each approach.

In ________,price is considered along with the other marketing mix variables before the marketing program is set.

All of the following are examples of segmented pricing,EXCEPT which one?

If demand changes greatly with a small change in product price,the demand is inelastic.

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?

Pricing a product mix is often difficult because various products have related demand and costs,and they face different degrees of competition.

Consumer perceptions of the product's value set the ________ for prices.

During difficult economic times,companies are often tempted to cut prices.However,any decision to cut prices should raise a number of important questions.Which of the following is NOT a question that would normally be considered when confronted with a decision to lower prices?

Price escalation in international markets is most likely to result from the higher costs of selling in another country and differences in market conditions or ________.

Market-________ pricing involves setting a low price for a new product in order to attract a large number of buyers.

A company sets not a single price,but rather a ________ that covers different items in its line that change over time as products move through their life-cycles and environmental conditions change.

Discuss pricing strategies and tactics used in retail contexts.Use appropriate examples to support your answer.

In industrial markets,salespeople outrank top management in determining the sales price of products,as well as pricing objectives and policies.

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________.

Fixed costs ________ as the number of units produced increases.

The simplest pricing method is breakeven pricing,which involves determining the price at which costs will be covered.

Trade or functional discounts are offered by manufacturers to which of the following?

A challenge for management in product line pricing is to decide on the price steps between the ________.

When a firm varies its price by the season,month,day or even hour,it is using ________ pricing.

Market-skimming pricing would likely be most effective in selling ________.