Exam 16: Pricing Concepts and Strategies

Value pricing is a strategy typically used for relatively low-priced goods and services that emphasizes the benefits derived from a product in comparison to the price and quality levels of competing offerings.

Odd pricing has practically vanished from the moderrn North American marketplace.

Bundling is common in the telecommunications industry, although many customers would prefer prices to be listed individually.

What is the global pricing strategy that allows the greatest flexibility in setting prices to reflect local marketplace conditions?

Product-line pricing is the practice of marketing merchandise at variable prices negotiated between buyer and seller.

What is the skimming pricing strategy sometimes referred to as?

Which of the following has monopolistic competition as a typical condition?

Not-for-profit organizations may try to maximize their returns with a single event, such as a fundraiser ball at $500 per ticket to benefit a local museum.

When Sony introduces a newly designed model of an LCD colour television, it should have little difficulty estimating the demand for the product.

What type of pricing is used at a men's clothing store that sells suits at four price levels ($295, $455, $525, $650)?

When the elasticity of demand or supply is greater than 1.0, then that demand or supply is said to be elastic.

Generally, flexible pricing policies are to be found a in mass-selling marketing program, while programs based on individual bargaining rely on one-price policies.

Price setting is based on the marketer's ability to strike a balance between desired profits and the customer's perception of a product's value.

Match each item to the statement or sentence listed below. a.breakeven analysis b.marginal analysis c.value pricing d.customary prices e.oligopoly f.elasticity g.demand curves h.cost-plus pricing i.competitive bidding j.penetration pricing strategy k.allowance l.loss leader m.cannibalization n.bundle pricing o.odd pricing p.transfer price q.competitive pricing strategy r.zone pricing s.Market Price t.bid rigging -A way of identifying the point of profit maximization is called _____. 2.measures the responsiveness of purchasers and suppliers to price changes. 3.is a strategy emphasizing a product in comparison to the price and quality levels of competing offerings. 4.are traditional prices that customers expect to pay for certain goods and services. 5.In a(n) _____, high start-up costs form significant barriers to entry for new competitors. 6.Base-cost per unit plus markup for costs and profit will equal _____. 7.Price theory is difficult to apply in practice because it is hard to determine _____. 8.Determining the sales volume requirements at a given price to recover total costs is called _____. 9.A manufacturer sells a product to a company-owned warehouse.The price charged is called a(n) _____. 10.The use of a relatively low-entry price compared with competitive offerings is called a(n) _____. 11.A price of $9.99 is an example of _____. 12.Offering a printer along with a personal computer at a single price is an example of _____. 13.A(n) _____ is designed to de-emphasize price as a competitive variable in the marketing mix. 14.A trade-in is an example of a(n) _____. 15.is the loss of sales of an existing product due to competition from a new product in the same line. 16.A(n) _____ is a product offered to consumers at less than cost to attract them to stores in the hope they will buy higher-priced merchandise. 17.The _____ is what a consumer or marketing intermediary actually pays for a product after subtracting any discounts, allowances, or rebates from the list price. 18.Quoted prices on proposed purchases that reflect the lowest price available from a group of sellers are determined through _____ 19.A uniform-delivered pricing system used by companies such as chapters.indigo.ca and amazon.ca is _____. 20.is a form of collusion, similar to price fixing.

Which of the following is one of the major benefits derived from target-return objectives?

Firms using a competitive pricing strategy try to reduce the emphasis on price competition by matching other firms' prices and concentrating their own marketing efforts on the product, distribution, and promotion elements of the marketing mix.

Cash discounts are usually specified by a term on the invoice such as 2/10, net 30, which means that the bill is due in full within 10 days, with 30 days remaining to claim a 2 percent discount.

What cost is an important geographic consideration in setting and quoting prices?

What is the recommended price approach for a company that is expanding into the global market and will face rather low foreign marketing costs?

What do prestige pricing objectives emphasize?