Exam 17: Pricing Objectives and Policies

A leading hard-disk manufacturer introduces a new line of high-capacity disk drivers. After selling to elite customers at a high price point, the company slowly reduces its prices over a period of time. The company is engaging in

Profit maximization objectives lead to high prices and monopolies--and are generally not in the public interest.

Stocking allowances are given to an intermediary to get shelf space for a product.

Which of the following is a SALES-ORIENTED pricing objective?

Which company uses administered prices?

At Priceline's Web site, visitors can specify the desired price they're willing to pay for a hotel in Chicago. Priceline then electronically forwards the price to hotels until one accepts the offer. What pricing policy is Priceline using?

The 3% price reduction Bella Computers gives its retailers is an example of:

2/10, net 30 means the buyer can take a 2 percent discount off the face value of the invoice if the invoice is paid within 10 days.

"Value pricing" means setting a fair price for a marketing mix that gives the target market superior customer value.

A target return objective and a profit maximization objective are both profit-oriented objectives.

Flexible pricing is most common in the channels, in direct sales of business products, and at retail for expensive shopping products.

A target return figure of zero implies:

To get the sale price, customers

Trying to sell a firm's new product to a large market at one low price is known as:

_____ are the prices final customers or users are normally asked to pay for products.

Some customers encourage the use of ______________ by paying more attention to supposed price discounts than to the actual prices (and values).

Sales-oriented pricing objectives:

A target return pricing objective seeks to obtain a specific level of profit--often stated as a percentage of sales or return on investment.

Final customers or users are normally asked to pay ______________ prices for products they buy.

A reduction from the list price given to channel members based on the job they are going to do is a(n):