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