Exam 13: Pricing Management

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use

Random discounting means discounting various products on a systematic basis.

A marketer uses only one pricing objective to avoid organizational confusion.

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.

A product is a price leader when

The use of price skimming discourages competitors from entering a market.

Identify and describe six types of psychological pricing.

If General Mills looks at Kellogg's cereal prices as the primary method of determining its own prices, General Mills is using

A price-skimming strategy assumes that

Differential pricing is effective mainly when focusing on only one market segment.

A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish?

It is usually easy to obtain an accurate price list for a competitor's products.

The six stages of setting prices should always be followed if prices are to be set correctly.

Markup is measured either as a percentage of ____ or a percentage of ____.

What type of pricing strategy is used in a situation where demand for a product is price inelastic and the seller has an ethical responsibility not to overcharge the client?

If PepsiCo sets its twelve-pack price at $3.99 to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods?

A manager at JC Penney discovers that Sears 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?

Scenario 13.1 Use the following to answer the questions. Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department stores. The new line would be positioned as a more distinctive brand than the typical glasses sold through department stores, and would be priced higher than other brands in the store, but a lower price line than the current Ray-Ban lines that are sold through more selective stores. In determining the price for this sunglass line, Ray-Ban wants to gather information about all brands sold in department stores and about customers' perceptions of those brands. -Refer to Scenario 13.1. If Ray-Ban selected the prices for its new sunglasses to be $60, $70, or $80, this would most likely be an example of using ____ pricing to enhance its distinctive positioning strategy.

Executives in Japan decided to price Lexus luxury cars in the United States at $55,000 while pricing them at $66,000 in their own country. This is an example of

Captive pricing, premium pricing, bait pricing, and price lining are all strategies aimed at maximizing the profits of an entire product line rather than an individual product.