Marketing Principles Semester Two Final

A marketer who wants to project a quality image would price a sweater at:

$150

Every day low prices

A company sets prices consistently low with no intention of offering discounts in the future

Market share is

A firm's percentage of the total sales volume generated by all competitors

Vehicles

A means for expressing or achieving something

One price policy

A price policy in which all customers are charged the same prices

A strategy is

A systematic plan

Product mix pricing strategies

Adjusting prices to maximize the profitability for a group of products

Markup pricing

Arriving at a price by adding a dollar amount to the cost of an item

When you equate quality with price, you are

Considering or describing them as similar or equal

The consumer's perceived value of an item is the basis for:

Cost-oriented pricing

Skimming pricing permits marketers to:

Cover the research and development costs incurred in designing the product

Allocated relationship

Distribute according to a plan or set apart for a special purpose

______ is a demand that is affected by a change in price

Elastic demand

Penetration pricing

Encourages as many people as possible to buy a new product by its low price

Ultimate

Furthest or highest in degree or order, utmost or extreme

The main goal of marketers is to keep products in the:

Growth stage

When you attain top market position, you

Have the highest standing in a competitive market

______ is demand that is barely, if at all, affected by a change in price

Inelastic demand

An item priced at or below cost to draw customers into a store is a ______

Loss leader

A marketer's relative standing/rank in relation to competitors is its ______

Market position

A ______ is a firm's percentage of the total sales volume generated by all competitors in a given market

Market share

A retail department store that has price tags on all of its merchandise is practicing a:

One price policy

Where can you see an example of flexible-price policy?

Online auction sites, such as e-Bay

What is not a type of promotional pricing?

Prestige

______ is the value of money (or its equivalent) placed on a good or service

Price

Geographical pricing

Price adjustments required because of different shipping agreements

______ refers to charging different prices to similar customers in similar situtations

Price discrimination

Which activity might some businesses do to suggest a bargain and help increase sales volume?

Price items in multiples, such as three for $1

What kind of policy does a store have that prices all of its sweaters at $50, $75, and $100?

Price lining

Prestige pricing

Prices are higher than average to suggest status and an upscale image to the consumer

Promotional pricing

Prices are reduced for a short period of time

Psychological pricing

Pricing techniques that help create an illusion for a customer

When Happy Toy Company offered a loss leader, they

Put a low cost popular item into their stores to attract customers

Cost-plus pricing is used primarily by:

Retailers

______ is a calculation used to determine the relative profitability of a product

Return on investment

Bundle pricing

Several complementary products in one package

Trade discounts

Some manufacturers quote prices to wholesalers and retailers in this way

Markup

The difference between an item's cost and sale price

Penetration pricing

The initial price for a new product is set very low in order to encourage as many people as possible to buy it

Skimming pricing

The price of a new product is set very high to capitalize on the high demand during its introductory period

Discount pricing

The seller offers reductions from the usual price

Seasonal discounts

These price breaks are offered to buyers who are willing to buy in advance of the customary buying season

Flexible price policy

This permits customers to bargain for merchandise

Which is a special type of promotional discount that goes directly to buyers when they sell back and old model of the product they are purchasing?

Trade in allowance

Promotional pricing

Used in conjunction with sales promotions where prices are reduced for a short time

Segmented pricing strategy

Using two or more different prices for a product even thoughdx there is no difference in the item's cost

When might penetration pricing be used to sell a product?

When a product is first introduced onto the market

If you make constant constant changes in your pricing strategy, your changes are

confusing your competitors

You would reach the break even point when

your sales revenues equal your costs and expenses