Chapter 11 HFT 2500

Consider these statements: A) in value-based pricing, companies based their prices on the products perceived value. B) value pricing means offering a price below competitors permanently, which differs from promotional pricing Which is true?

Both are true.

Costs set the highest floor for the price a company can charge for its product. True or false?

False

Market-skimming pricing

Setting a high price when the market is price insensitive

Product-bundle pricing

Combines several products & offers the bundle at a reduced price

All of the following are external factors influencing pricing decisions except: Economy Costs Competition Nature of the market and demand Consumer perception of price and value

Costs

Discriminatory pricing

Refers to segmentation of the market and pricing differences based on price elasticity character segments

Up selling

Sales and reservation employees are trained to offer continuously a higher-priced product to customers needs, rather than settling for the lowest price

Price must be coordinated with product design, distribution, & promotion decisions..T or F

True

Price adjustment strategies

Volume discounts, discriminatory pricing, discounts based on time of purchase

Which of the following are not a new product pricing strategy? Prestige pricing, volume discounts, market skimming pricing, value pricing, market-penetration pricing

Volume discounts, value pricing