Exam 20: Setting Prices

Which of the following pricing objectives sets prices to recover cash as quickly as possible?

Pricing the basic product in a product line low while pricing related items at a higher level is called

Kohl's pays $16.50 for a six-ounce bottle of cologne and sells it for $25.95. Its markup as a percentage of cost is approximately ____ percent for this product.

Describe the six steps of the process that marketers can use to establish prices.

Identify and describe seven types of psychological pricing.

The objective of maintaining or increasing market share depends on growth in industry sales.

Scenario 20.1 Use the following to answer the questions.Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department stores. The new line would be positioned as a more distinctive brand than the typical glasses sold through department stores, and would be priced higher than other brands in the store, but a lower price line than the current Ray-Ban lines that are sold through more selective stores. In determining the price for this sunglass line, Ray-Ban wants to gather information about all brands sold in department stores and about customers' perceptions of those brands. -Refer to Scenario 20.1. Ray-Ban's plan of gathering information about the other brands sold in department stores, including their prices, would most likely be used in a ____ basis for pricing.

What is bundle pricing? Give three examples, each one from a different industry.

If local Shell gasoline stations look at BP stations' prices as the primary method of determining its own prices, Shell is using ________

Information about competitors' prices ________________________.

If PepsiCo sets its twelve-pack price to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods?

Most pricing objectives based on ____ are achieved by trial and error because not all cost and revenue data are available when prices are set.

Two types of new-product pricing are price skimming and product-line pricing.

The importance of price depends on the type of product, the type of target market, and the purchase situation.

Which of the following basis for pricing is most commonly used by retailers? ​

Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a ____ pricing objective.

Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using ______ usually resulting in a ____

Cost-plus pricing is popular in periods of rapid inflation.

Explain differential pricing and then describe the four major types.

A marketer is most likely to set prices according to a cash-flow objective when a