Exam 11: Pricing Concepts and Strategies: Establishing Value

A prominent fast-food chain sets a very low price for its burgers with the intent of driving its competition out of business.This is an example of:

Which of the following shows how many units of a product or service consumers will request for during a specific period of time at different prices?

A shoe manufacturer produces shoes for customers in the middle-range segment and the upper-range segment.It also has shoes in between these segments, at different prices, to represent distinct differences in quality.This is an example of:

Blue Corp., a laptop manufacturer, introduces a new model in the market.Since the target audience for this product is students, Blue Corp.launches the model at a low price.The main objective of the company is to build sales and profits quickly.This is an example of:

Explain the difference between a cumulative quantity discount and a noncumulative quantity discount.

Jade's manufactures electronic appliances.Jade's does not have any retail stores of its own and prefers to sell its products through Ramon.Ramon stores are striking in decor, well maintained, and serviced by a polite and well-informed staff that pays great attention to customer service and feedback.Ramon also has a huge promotional budget and launches prominent promotional campaigns on a regular basis.In fact, Jade's offers Ramon a discount on products that are included in these campaigns.This is an example of a(n):

Consumers are more likely to judge a product's quality based on its price when they are less knowledgeable about the product category.

Break-even analysis for Joe's store -What is the selling price at Joe's store?

A confectionery company pays a fee to a retailer to place its products near the checkout counter.By doing so, the confectionery company hopes to tempt customers to make impulse purchases.In this example, the fee paid to the retailer is a(n):

A clothing line company promises a large price reduction to its wholesalers if they feature the company's goods in their promotional campaigns.This is an example of a(n):

A local popular coffee shop has increased its regular coffee price by 15% and observed decrease in demand of 5%.The demand for the regular coffee at this coffee shop is:

A company objective that is based on the premise that the firm should measure itself primarily against its rivals is:

Susan has a children hair salon in Toronto.She pays $70,000 per year rent and utilities.She hires a part time assistant and pay her $35,000 a year.On average, she uses $5 worth of material for each child haircut.Her rate is $20 per child and receives on average 20% tip.A)How many clients per month does she need to have to breakeven? B)If she increases the price to $25 and receives 15% tip, how many client she should have to make $80,000 profit a year?

Blue Corp., a company that manufactures high quality mobile phones, is set to launch a new series of tablets.In order to reduce competition and increase the demand for the new products, the company launches them at a very low price.Blue's objective is most likely to be:

Lee's, a department store, decides to promote its sales during Christmas. In the clothing section, it offers customized men's T-shirts for $11.99. To every customer who purchases a pair of shoes, the shoe department issues a document promising a discount of $20 on the customer's next shoe purchase. The store also has its air conditioners on sale at a reduced price because the sale of air conditioners is slow during the month of December and the company wants to get rid of its slow-moving merchandise. -Price reduction on air conditions in December is an example of a:

A car manufacturer offers cars in the luxury segment.It establishes a price floor and a price ceiling for its entire line of cars and then sets a few other price points in between to represent distinct differences in quality.It helps the manufacturer to satisfy a wide range of tastes and budgets.This is an example of:

Which of the following pricing methods determine the final price to charge without recognizing the role that consumers or competitors' prices play in the marketplace?

Differentiate between complementary products and substitute products.Provide examples to support your answer. B.

A dairy farm sells milk to a confectionery company.The dairy offers the company a reduction of 10 percent on the total amount of the invoice if the company settles the amount within a period of 7 days instead of the usual 30 days.This is an example of a(n):

Which of the following occurs when only a few firms providing a particular product or service dominate a market?