Exam 14: Pricing Concepts for Establishing Value

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.

Cheryl wants to quickly establish a dominant market share for her new line of ergonomic pens.To do this,she will likely use a market penetration pricing strategy.

There are many options available to consumers when it comes to breakfast cereals.So,if Kellogg's significantly increases the price of Rice Krispies,consumers are more apt to buy alternate cereals instead.This illustrates which concept?

What is one of the drawbacks of using a price skimming strategy?

What five components should be taken into consideration when a company is developing its pricing objectives?

The break-even point is estimated by

Price is the _____________ a consumer is willing to make to acquire a specific product or service.

A(n)_______ market legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer.

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.

Variable costs change with

Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell.Naomi is using a _______ pricing strategy.

The contribution per unit is

Joe's Deli is trying to compete with the local Subway store.When Subway offers lower prices on certain sandwiches during its "customer appreciation month," Joe's Deli reduces the price of its similar subs in order to compete.What pricing orientation is being utilized by Joe's Deli?

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.

If a firm is engaged in monopolistic competition,it should seek a way to differentiate itself.

If upscale manufacturers of prestige products like BMW autos,Tiffany glass,or Rolex watches offered lower-priced products,what might happen to the demand for their products? Why?

If the price for a product increases,the demand for the complementary product will

Unlike product,promotion,or place,price is the only part of the marketing mix

For which of the following is demand likely to be least sensitive to price increases?

Pricing _______ products is especially challenging because little or nothing is known about consumers' perceptions of its value.