Exam 11: Pricing Strategy

According to the general pricing model, in the short term, discounts and allowances offered by manufacturers have to be larger or more frequent than initially planned because:

_____ is a variation of cost-oriented pricing and is closely related to markup pricing.

_____ are discounts often offered in the form of pricing reductions in exchange for a channel member featuring a product in store advertising or on in-store displays.

One of the disadvantages associated with cost-oriented approaches to pricing is that:

In which stage of the general pricing model does a marketer estimate how much of a particular product the target market will purchase at various price levels?

Hilda wants to purchase an expensive denim jacket from Alven's Corner, a premium apparel store. Her friend, Martha, suggests that Hilda buy the same jacket for half the price from a discount store in her neighborhood. Hilda, however, believes that the high cost of the jacket in Alven's Corner is an indication of its premium quality, and so she's willing to pay more. Which of the following psychological pricing strategies has Alven's Corner used to price its product?

Which of the following is a variation of cost-oriented pricing?

Which of the following is most likely to be a reason for a firm to price a product above competition?

Price discrimination, which lessens competition or is deemed injurious to it, is outlawed by the _____ Act.

For which of the following products is a retailer most likely to use prestige pricing?

_____ is a variation of cost-oriented pricing which is commonly used in retailing.

For which of the following products is a seller most likely to use a going-rate pricing strategy?

Which of the following is an advantage of using the everyday low pricing (EDLP) strategy?

When Lucile visited a stationery store to buy tape, she noticed that each roll of tape was priced at $1.99. In fact, most of the prices at the store were set a few dollars or a few cents below a round number. This indicates that the manager of the store is using a(n) _____.

In odd-even pricing, _____.

A razor manufacturer introduces its new three-blade razor at a relatively low price to counter competition and to encourage more consumers to purchase it. Through this approach to pricing, the razor manufacturer hopes to create a rapid mass market within a short span of time and obtain large economies of scale. This is an example of _____.

Which of the following is a primary consideration in evaluating demand influences on pricing decisions?

A bakery has to set the price of its sourdough bread. Which of the following is a psychological factor relevant to the pricing decision of the baker?

Cogniti Inc. manufactures high-end designer sports shoes. The company increased the price of its most popular brand of shoes, Sportsy, by 10 percent, and the demand for these shoes went up by 50%. Estimate the price elasticity for Sportsy.

Rubrix, a leading animation and gaming company, launches its video game console at an introductory price of $189.00, which is relatively low for products of this category. The reasoning behind this low pricing is that Rubrix expected fierce competition to move in rapidly. Also, the demand for video game consoles varied according to the price sensitivity of prospective customers. Identify the pricing policy used here.