Exam 14: Pricing Concepts for Establishing Value

Bill desperately needed tires for his car,and he found an ad with an incredibly low price.When he got there,he found out that those had supposedly been sold out,and he was pressured into buying tires that were more expensive than he wanted.Bill found out later that Marcelo had the same experience at the store a few weeks earlier.It's quite possible that both Bill and Marcelo had become the victim of a deceptive pricing tactic known as

Explain how the demand curve works,and how it benefits a firm.

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

According to a typical demand curve,the higher the price,

If a telecommunications company drastically cuts the price for cellular phone service in order to eliminate local competitors,the company could be charged with

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.

__________ price fixing occurs when competitors collude to control prices,and __________ price fixing occurs within a marketing channel to control prices passed on to consumers.

In _______ many firms provide similar products that are considered substitutes for each other.

Explain the concept of the high / low strategy.Why is this an attractive strategy to marketers?

A "no-haggle" pricing policy is a type of _____ pricing strategy.

For a price skimming strategy to work,the product or service must

How is consumer behavior affected by the "income effect"?

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

Frank's Heating and Air Conditioning Company specializes in electric heat pumps.Frank keeps track of the price of natural gas,knowing that

The process of charging different prices for goods or services based on the type of customer,level of demand,or time of the day,week,or season is referred to as

The _______ is the ratio of the percentage change in quantity demanded to the percentage change in price.

In a market with _______ there are many firms providing differentiated products.

Explain the difference between fixed and variable costs and provide examples of each.

Everyday low pricing (EDLP)provides value to consumers by

Sellers using an EDLP pricing strategy often communicate their strategy through the creative use of a reference price.