Exam 9: Pricing: Capturing Customer Value

Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing.

By definition,this type of pricing is used when a firm sells a product or service at two or more prices,even though the difference in price is not based on differences in cost.

Which of the following is NOT an example of value-based pricing?

When Pepsi came out with Pepsi Blue and priced it at half price to attract buyers,Pepsi was using ________.

The illegal practice of selling below costs with the intention of punishing a competitor by driving a competitor out of business is known as ________ pricing.

Pricing that involves setting prices based on competitors' strategies,costs,prices and market offerings is known as ________.

________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

Prices have a direct impact on a company's bottom line.

Price setting is usually determined by ________ in large companies.

Of the following,a company would be LEAST likely to set prices low to ________.

When microwave ovens were being developed in the 1980s,they represented such a radical concept that the company was unsure about pricing.Early prototypes were large,cumbersome and would need a price tag of thousands of dollars simply to breakeven.With remarkable insight,a new divisional manager took over the project and issued the development team with a very clear design brief.The new microwave was to be shaped like an air-conditioner,should look like an oven,have buttons like an oven and be priced around the same as a conventional oven (at the time around $500).The company would not commercialise until the development team could design a microwave at this price.This is an example of which type of costing?

A product or service's ________ is the sum of all the values that consumers give up to gain the benefits of having or using the product or service.

________ power refers to a company's ability or power to escape price competition and to justify higher prices and margins.

Each of the following economic factors can have a strong impact on a firm's pricing strategy EXCEPT ________.

Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share.As a consultant,you should recommend a ________ pricing strategy.

Under ________ competition,the market consists of many buyers and sellers trading in a uniform commodity.

Which of the following is the main problem with breakeven analysis?

Briefly outline the following concepts: (i) Price ceiling. (ii) Price floor

With ________ pricing,price is set to match consumers' perceptions of product value.

Rent,electricity and executive salaries are examples of ________ costs.