Exam 14: Pricing Concepts for Establishing Value

A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy

Tess is the marketing manager for a fast food restaurant chain. She uses a target return pricing strategy because her firm's primary objective is to

Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model.

Because consumers are generally more sensitive to price increases than to price decreases, it is easier to lose current customers with a price increase than it is to gain new customers with a price decrease.

Because there are many firms in monopolistic competition markets,

Karen initially charged $80 for an hour-long massage and averaged 20 clients per week. When she raised her price to $100, the number of massages decreased to 15 per week. What is the price elasticity of demand for her service?

Which of the following is most likely to be characterized by pure competition in the United States?

Fenton has always used standard markups to determine the prices for his clothing products. You are advising him to change his pricing strategy. What advice would you give Fenton?

Price is often the most challenging of the four Ps to manage, partly because it is often ______________ in developing marketing strategies.

Proving that a company has engaged in the deceptive bait and switch practice is easy.

Many years ago Honda's Accord and Ford's Taurus were the top two selling cars in the United States. As the year was coming to an end, Ford cut the price of the Taurus, hoping to outsell the Accord and allow Ford to claim that "Taurus is the best-selling car in America." Ford was using a ___________________ pricing strategy.

If a 1 percent decrease in price results in more than a 1 percent increase in quantity demand, demand is

Which of the following is NOT one of the five Cs of pricing?

Rarely is the lowest-price product offering the dominant brand in a given market.

A gray market employs irregular but not necessarily illegal methods of distributing products.

If a firm in a purely competitive market can differentiate its product or service, it becomes part of a _______________ market.

Historically, prices were

Brandon is conducting an experiment, charging different prices for the same products at different stores and measuring sales. With this information, he will construct a demand curve. How can Brandon use this information?

When a retail store rarely sells deeply discounted or sale products, it is known as everyday low pricing.

Health clubs often use a low, introductory offer price to get people to join their club. These low prices represent a ______________ pricing strategy.