Exam 13: Pricing Concepts for Establishing Value

Patricia and D'Wayne were working on pricing their line of handcrafted office furniture.D'Wayne said,"I think we've got all the main components that affect us and our products,but let's go over the list once again.We've got the stores that will carry our products,our firm's objectives,how customers will respond,and the costs." Which of the following is missing from Patricia and D'Wayne's list of the components?

Marketers can deliver high value through high or low prices,depending on:

Why is it more fun and challenging for a marketer to be part of a market characterized by monopolistic competition than be part of one characterized by pure competition?

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

Gray markets can be a challenge to marketers because:

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

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:

The full price of a product or service includes all of the following EXCEPT:

A study found that,among addicted smokers,a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded.For these consumers,cigarettes have a(n)________________ price elasticity demand.

In general,prices should not be based on costs because consumers make their purchase decisions based on perceived value,not the cost of production.

A customer orientation toward pricing explicitly invokes the concept of:

If the price for a product increases,the demand for a substitute product will:

David manages a Shoney's restaurant.He is considering staying open later in the evening.For David,the variable costs associated with staying open longer hours will include all of the following EXCEPT:

Julia's is an upscale women's clothing store.Prices are based on customers' beliefs about the value of the clothing.The store focuses on a limited target market and provides excellent customer service.Julia's is using a ________________ pricing strategy.

In addition to the product-specific and firm-specific factors that affect pricing,there are two broader factors - the Internet and sociocultural factors.

The break-even point is estimated by:

Because there are only a few firms in markets with oligopolistic competition:

Gary is the marketing manager for an automobile dealership.His boss tells him the firm's primary goal is to increase their local market share from 15 to 30 percent.Gary's pricing strategy will focus on:

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

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: