Exam 13: Pricing Concepts for Establishing Value

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:

Jacob rents rooms in his hotel for an average of $100 per night.The variable cost per rented room is $20,to cover maid service and utilities.His fixed costs are $100,000 and his profit last year was $20,000.For Jacob,the contribution per unit is:

The Clayton Act and the Robinson-Patman Act forbid certain types of:

Dan is especially price sensitive.He has been known to line up on "Black Friday" (the day after Thanksgiving)at 4 a.m.in order to be among the first to buy sale items.Dan would likely respond to a __________ pricing strategy.

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

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

In which of the following levels of competition does one firm control the industry and restrict competition?

Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price:

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

A change in __________ would probably cause a change in the demand curve for a product.

A reference price might be considered deceptive if:

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host.Since she does not know much about wine,she will likely use the price of the wines as:

Marketers advertising an artificially high "regular price" are unethically attempting to influence consumers' __________ perceptions.

Mario is the first retailer in town to sell games for Sony's new PlayStation 3 machine.Mario wants to quickly capture as much of the market for the new games as possible.Mario will likely use a __________ pricing strategy.

A reference price is:

If a furniture store sets reasonable prices but rarely offers special discounts or sales,this is an example of an "everyday low pricing" strategy.

When Apple Computer Company introduced the iPhone--a combination phone,MP3 player,and Internet access device--in 2007,it was priced at $499,considerably higher than either the iPod or competing cell phones.Apple was probably pursuing a __________ pricing strategy.

What does an everyday low prices strategy say to consumers?

In addition to knowing more about the products,services,manufacturers and retailers,Internet users know more about prices.These consumers are becoming more:

Traditional demand curve economic theory is used by marketers to understand __________ in the five Cs of pricing.