Exam 14: Pricing Concepts for Establishing Value

At the break-even point,

Brands that have developed loyal customers have a higher price elasticity of demand.

Most public colleges charge less than half the price of similar private colleges. How can each type of college be delivering value?

When Ursula decides how to price new products in her gift store, she measures the value of her product offerings against those of the other stores in her area. Ursula uses a __________________ pricing strategy.

Almost every time a new-to-the-market electronic device (iPods, flat-screen TVs, digital cameras, PlayStation, etc.) has been introduced, the marketer has used a price skimming strategy. Why?

Sharon knew that her established customers liked her product much better than her competitor's. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Sharon was considering

With a __________ pricing strategy, marketers set a low initial price for the introduction of a new product or service.

A demand curve shows the relationship between ___________________ in a period of time.

The __________ occurs when unit cost drops as the quantity sold increases.

What type of pricing tactic is being used when several airlines agree to charge the same fare for a single route?

Brad always buys and uses Nike brand golf balls. If he finds a Titleist or Callaway ball in the rough, he gives it away. Brand loyal golfers like Brad allow Nike to charge a higher price and not lose many sales. By building a strong brand, Nike has effectively

If the fixed costs of manufacturing a new cell phone are $10,000, the sales price is $60, and variable cost per unit is $20, the break-even point is

When Sony released its PlayStation 3 game machines, it charged a high price, attracting the most avid game players. This was a market penetration pricing strategy.

Gary is the marketing manager for an automobile dealership. His boss tells him the firm's primary goal is to increase its local market share from 15 to 30 percent. His firm is using a ________ orientation.

How does a loss leader strategy work? What is the danger of using this strategy?

Variable costs change with

When firms set prices similar to those of competitors, they are following a strategy of

Assume the demand for electricity, a necessity with few substitutes, is -0.2. If the electric company raised its rates by 10 percent, we would expect

Rodi owns Hallman's auto repair service. He has observed over the years that customers keep their high-mileage cars longer when the economy is doing poorly, creating demand for his maintenance and repair service. Rodi has observed the impact of ______________ on demand for his service.

Break-even analysis is useful because it allows managers to