Exam 11: Developing New Products

Which of the following pricing methods focuses on the overall worth of the product offering as perceived by consumers,who compare it what they need to sacrifice in order to acquire the product?

A firm with a company objective that can be implemented by focusing on target return pricing is using a:

Explain the limitations associated with a break-even analysis.

A department store offers a discount if a shirt is purchased with a pair of trousers.The combined purchase would cost less than it would cost the customer to purchase the two individually.This is an example of:

A company manufacturing shampoo charges a low price to customers who buy sachets on the premise that these customers belong to lower income groups and are more price sensitive.On the other hand,it charges higher prices to customers who purchase the same shampoo in bottles.This is an example of:

All three gyms decide to charge a higher fee from men.This is an example of:

All the gyms collude and decide to control the enrolment and monthly fee payable by customers.This is an example of:

A store advertises a pair of shoes at $79.99 with a cash-back offer of $20.The refund is made by the manufacturer.This is an example of a:

Which of the following strategies is used by sellers to build a perception of the price as being lower than it actually is?

Tangerine,an exclusive retailer of handbags,chooses its suppliers very carefully.It prefers one supplier mainly because it offers great quality and 40 percent discount on any single order of more than $20,000.The supplier is offering a(n):

The usual pricing strategy implemented by firms when they have a particular gain goal as their overriding concern is the:

Those products for which changes in demand are negatively related are called:

When many firms sell closely related but not homogeneous products,it is called:

Purple Corp.,a retailer selling air conditioners,aims to sell 5,000 air conditioners in a year.If Purple reaches this target,the manufacturer will offer a discount on every air conditioner bought by the retailer during that year.This is an example of a(n):

When determining its pricing strategy,if a firm is willing to let profits suffer in order to increase its customer base,the company objective is most likely to be:

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:

A store that sells hockey equipment offers a discount if a customer also buys a pair of skates.The combined purchase costs less than it would cost the customer to buy the products individually.This is an example of:

The change in the quantity of a product demanded by consumers because of a change in their earnings is called the:

Explain the drawbacks associated with the market penetration strategy.

Target profit pricing is designed to produce a specific return on investment,usually expressed as a percentage of sales.