Exam 11: Pricing Concepts and Strategies: Establishing Value

The pattern of buying both premium and low-priced merchandise or patronizing both expensive, status- and price-oriented retailers is called:

Explain the drawbacks associated with the market penetration strategy.

Ray Inc., a shoe manufacturer, pays a good amount to a department store to allow it to display its shoes in the store's window where they are likely to attract a lot of attention from customers.The money paid by Ray's to the department store is an example of a(n):

Jared's, an exclusive deli, marked down its smoked sausages from $9.99 to $6.99 in a prominently displayed poster at its smoked meats section.When consumers viewed the sale price, they tended to pick more smoked sausages than they required.This is an example of strategy using:

When a market legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer, it is called a:

Those expenses that remain essentially at the same level, regardless of any changes in the volume of production, are called:

Clove, a fitness centre, opens a new gym in Boston. Two gyms already exist around the same locality. To attract customers and drive its competitors out of business, Clove, offers a very low enrolment and monthly fee. The owners of the other gyms meet with the director of Clove to negotiate. Finally, all three gyms collude and decide to fix a standard enrolment and monthly fee that customers will have to pay. They also decide to charge a higher fee for men because they spend greater time in the gym. -All the gyms collude and decide to control the enrolment and monthly fee payable by customers.This is an example of:

The pricing orientation that explicitly invokes the concept of value for the users of the product and in which prices are set to match the users' expectations is called: