Marketing- SB11
Price elasticity of demand is expressed as percentage change in ________ divided by the percentage change in ________.
quantity demanded; price
Customers are encouraged to buy a larger number of a single product when a firm offers ______.
quantity discounts
Fixed costs Blank______.
remain at the same level despite changes in production
A firm with a sales objective will set prices at a level that generates more ______.
revenues
Price fixing is the conspiracy among firms to _____.
set prices for a product
________-oriented approaches to pricing set the price to reflect the way the marketer wants consumers to interpret prices relative to competitor's offerings.
Competition
________ pricing is seen as the exact opposite of skimming pricing when introducing a new product.
Penetration
_______ discounts are also known as functional discounts.
Trade
Which of the following is an example of deceptive pricing?
a bait an switch to lure customers into the store to sell them a higher priced product
A one-price policy means there is one price for ______.
all buyers of the product
Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are known as ______ approaches.
cost-oriented
For some products where tradition, a standardized channel of distribution, or other competitive factors dictate the price, ________ pricing is used.
customary
Organizations choosing competitor-oriented approaches to set prices might use which two pricing strategies?
customary pricing,loss-leader pricing
Select all of the following that are common approaches to setting an approximate price level for a product.
demand-oriented,competition-oriented,cost-oriented
When using predatory pricing, a firm sets a very low price for one or more of its products in order to ______.
drive its competition out of business
When two or more competitors explicitly or implicitly set prices, this practice is called ________ price fixing.
horizontal
A demand curve enables a firm to examine prices Blank______.
in terms of quantity sold
For a special promotion, retail stores may deliberately sell a product below its customary price to attract customers, in hopes that they buy other items with large markups, in an approach known as ________ pricing.
loss-leader
Price deals that _____ fall into the category of deceptive pricing.
mislead consumers
Marketing managers may identify profit, market share, social responsibility, or even survival as pricing ______.
objectives
Pricing ________ involve specifying the role of price in an organization's marketing and strategic plans.
objectives
Organizations using ________ pricing set the initial price low for the introduction of the new product to appeal immediately to the mass market.
penetration
A used car dealer advertises a $5,000 SUV for sale in the local paper. When prospective customers arrive at the dealership they are told that the $5,000 SUV is sold and are offered a $15,000 SUV instead. This is an example of ______.
bait and switch
If firms set prices with specific consideration of firms challenging them directly for customers, they have adopted a ________ approach to pricing.
competition-oriented
Setting different prices for products depending on individual buyers and purchase situations is called a ________ policy.
flexible-price
Prestige pricing means the organization deliberately prices a product ________ so that ________ consumer will be attracted to the product and buy it.
high; quality-conscious
A demand curve is derived by measuring how many units of a product are sold at various Blank______.
levels of price
Which is an example of a demand-oriented approach to setting an approximate price?
skimming pricing
Reductions off the list price offered to resellers in the marketing channel on the basis of where they are in the channel and the marketing activities they are expected to perform in the future are called ______ discounts.
trade
________ promises to reduce the average price to consumers while minimizing promotional allowances that cost manufacturers billions of dollars every year.
Everyday low pricing
Vertical price fixing might occur between ______.
a manufacturer and a retailer in the same channel
A pricing constraint firms face is the price that its _________ are currently charging and likely to charge in the future.
competitors
Factors that limit the range of prices a firm may set are known as pricing ______.
constraints
Legal and regulatory issues and consumer demand are pricing ________ that limit what a company can charge for its products.
constraints
Generally, a seller can charge a higher price for a product when Blank______.
demand for the product is high
Which profit-oriented pricing objective is common in many firms because the targets can be set and performance measured quickly?
maximizing current profit
Cash discounts are offered because they encourage customers to ______.
pay their bills quickly
A price reduction offered to channel members for featuring the manufacturer's product in their advertising or selling activities is called a(n) allowance.
promotional
When a manufacturer offers a grocery retailer an extra amount of free product for including this product in weekly advertising and in-store sales, this is considered a ________ allowance.
promotional
When a new product appeals to those segments of consumers who are willing to pay a high initial price to have an innovation first, marketers should use a ________ pricing strategy.
skimming
In what pricing strategy are prices lowered in a series of steps with the demand by those who really desire the product being satisfied at the highest prices?
skimming pricing
When a board of directors determines a specific profit goal, marketing managers usually implement a(n) ______ objective.
target return
When a company sets a profit goal of 20 percent for pretax ROI, it is using which type of pricing objective?
target return
Which two are profit-oriented approaches to setting a price?
target return pricing,target profit pricing
When the New York Mets set higher ticket prices for games versus the popular New York Yankees than for those versus the Pittsburgh Pirates, its pricing is based on ______.
demand
Many South Korean HDTV manufacturers are willing to give up immediate profits for long-term penetration of the market. This is a pricing objective known as ______.
managing for long-run profits
cost is the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. (Enter one word in the blank)
Fixed
How does a skimming pricing strategy approach price setting?
Prices are set high initially and then lowered in a series of steps.
Walmart promotes that its average price for products will be lower than the competition. Walmart is able to offer low prices to its customers when its suppliers utilize ________, minimizing expensive promotional allowances.
everyday low pricing
Current profit ________ and target ________ are two strategies used by firms that are pursuing a profit pricing objective.
maximization; return
American firms are sometimes criticized for using which profit-oriented pricing objective, because it results in a short-term orientation?
maximizing current profit
Which of the following are important types of discounts for marketing strategy? (Select all that apply)
cash discounts,quantity discounts,seasonal discounts
When a buyer arrives at a retail location and is told that the product she saw in a promotion is out of stock and no rainchecks are available, the retailer might be accused of ______.
bait and switch
Reductions in unit costs for a larger order are known as discounts.
bulk
The marketing of two or more products in a single package price is known as ________ pricing.
bundle
A company can encourage its wholesalers and retailers to pay their bills quickly by offering ________ discounts.
cash
The practice of colluding with other firms to set prices is called ______.
price fixing
A firm must know its competitors' ________ in order to best set its own.
prices
Patents and limited competition reduce ________, making high prices possible for technology products early in their life cycles.
pricing constraints
By focusing on target profit pricing or target return pricing, a firm is using a ________ pricing approach.
profit-oriented
Which of the following are reductions in unit costs for a large order?
quantity discounts
A firm's goal in offering a trade discount is to _____.
reward wholesalers and retailers for marketing functions
Firms that set ________ objectives believe that increased revenues will in turn lead to increases in market share and profit.
sales
Manufacturers use _____ discounts when they want to encourage buyers to stock inventory earlier than their normal demand would require.
seasonal
Loss-leader pricing entails ______.
selling a product below its customary price to attract attention to it
Customary pricing entails ______.
setting a price at a certain level based on factors like tradition or a standardized channel of distribution
A target return objective can be described as Blank______.
setting a specific profit goal, say 20 percent
For ________ pricing to be effective, there must be sufficient customers willing to buy the product at the high initial price, they should interpret that high price as signifying high quality, and that high price should not attract competition.
skimming
________-oriented pricing approaches weigh factors underlying expected customer tastes and preferences more heavily than other factors.
Demand
Which of the following are pricing practices that are legally restricted?
Price discrimination,Price fixing
discounts are price reductions offered on products to stimulate purchasing during times of low consumer demand, encouraging buyers to stock inventory earlier than their normal demand would require. (Enter one word in the blank.)
Seasonal
Organizations can be most effective using skimming pricing under which two conditions?
The customer understands and highly values the product.,The product is protected by patent.
Vertical price fixing is ______.
a requirement by a seller that its resellers price at a certain minimum level
Horizontal price fixing is ______.
an agreement between competitors to set a standard price for customers
Demand-oriented, cost-oriented, profit-oriented, and competition-oriented are four approaches used to set Blank______.
approximate price levels
Four approaches used to set ______ are oriented around demand, cost, profit, and competition.
approximate price levels
Break-even analysis analyzes the relationship between total revenue and total cost to determine profitability ______.
at various levels of output
The purpose of using low prices in a loss-leader pricing strategy is to ______.
attract customers that will hopefully buy other products too, at higher margins
Common approaches to pricing are oriented around which four elements?
competition,demand,cost,profit
Match the following pricing issues that have legal implications to the correct description.
conspiracy among firms to set prices,charging different prices to different buyers for goods of like grade and quality,price deals that mislead consumers,charging a very low price for a product with the intent of driving competitors out of business
Price deals that mislead consumers fall into the category of pricing.
deceptive
Penetration, price lining, and bundle pricing are all types of which of the following pricing approaches?
demand
The practice of replacing promotional allowances with lower manufacturer list prices is known as ________ pricing.
everyday low
A(n) pricing policy allows for more responsiveness to demand, cost, and competitive factors than does a fixed-price policy (one word).
flexible
Price fixing, price discrimination, and predatory pricing are ______.
legally prohibited
In penetration pricing, the initial price of the product is set Blank______.
low, to appeal to the mass market
If a firm prices its products relatively low compared to the cost to develop, with the prospect of gaining a high market share, it is utilizing which profit-oriented pricing objective?
managing for long-run profits
A ________ policy is also known as fixed pricing.
one-price
Setting a price with no variation for product buyers is called a ________ policy.
one-price
Cost-oriented approaches to pricing consider which three things in the setting of a product's price?
overhead,production costs,profit
When using pricing, a firm sets a very low price for one or more of its products with the specific intent to drive its competition out of business. (Enter one word in the blank.)
predatory
Marketers who use Blank______ to signal the quality of an item, must be careful not to drop the price of the product below the point where customers become skeptical of its quality and refuse to purchase it.
prestige pricing
The money or other consideration (including other products and services) exchanged for the ownership or use of a product is known as ______.
price
Charging different prices to different buyers for goods of like grade and quality is known as ______.
price discrimination
If a firm sells the same product to different buyers at different prices, it may be considered Blank______.
price discrimination
The percentage change in quantity demanded relative to a percentage change in price is known as ______.
price elasticity of demand
What two strategies can be used as part of a firm's profit objectives?
target return,maximizing current profits
The newer a product and the earlier it is in its life cycle, ______.
the higher the price that can usually be charged
Bundle pricing refers to ______.
the marketing of two or more products in a single package price
What is a marketer most likely trying to convey about a product if it is priced using prestige pricing?
the product is of high quality
Match each type of discount with the motivation for offering it.
to encourage customers to place larger orders,to encourage buyers to stock inventory earlier than their demand would require,to reward channel members for future marketing efforts,to encourage retailers to pay their bill quickly
Break-even analysis analyzes the relationship between which two at various levels of output?
total cost,total revenue
According to the profit equation, profit is ______.
total revenue minus total cost
Profit = (____ x quantity sold) - (fixed cost + variable cost)
unit price
The ratio of perceived benefits to price is a product's . (one word)
value
The relationship, or ratio, between a product's perceived benefits and the consumer's costs is known as its ______.
value
When using competition-oriented pricing approaches, price setters stress _____.
what \the market\" is doing"
