Chapter 10 Set
A tablet manufacturer is new to the market and finds its costs are very high initially. One year later, the per-unit cost has decreased by 22% from the first days of operation. The tablet manufacturer has realized this drop in average cost over time through what process?
Experience curve
In the aftermath of the Great Recession of 2008dash-2009, many consumers rethought the price-value equation and became more value conscious. In response, which of the following is a recommended long-term pricing strategy for marketers?
Lower prices for the short term. THIS IS WRONG, Its probably to offer more affordable lines
The learning curve is representative of the ________.
drop in the average per-unit production cost that comes with accumulated production experience
If demand changes greatly with a small change in price, the demand is ________.
elastic
Dips in the economy and the instant price comparisons made possible by the Internet have contributed to ________.
increased consumer price sensitivity
If demand hardly changes with a small change in price, the demand is ________.
inelastic
A company that sets prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for the company's effort and risk is using which pricing strategy?
Cost based pricing
What is the simplest and most common form of pricing manufacturers and resellers use?
Cost plus pricing
A marketer considers buyers' perceptions as key to pricing and product design. The marketer considers all other marketing mix variables before the marketing program is set. Which pricing strategy is being used?
Value based pricing
As a manufacturer increases the price, ________.
break even volume drops
Companies with lower costs ________.
can set lower prices that result in smaller margins but greater sales and profits
Department stores such as Kohl's and Macy's practice high-low pricing by ________.
having frequent sale days for store credit-card holders
Stores like Target, Macy's, and J.C. Penney's use a pricing strategy, which is directly the opposite of EDLP, everyday low prices. What pricing tactic do they use that involves charging higher prices on an everyday basis and frequent promotions to lower prices temporarily on selected items through sales, coupons, and other promotional activities?
high low
________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.
high-low
Which of the following is an internal factor that affects pricing decisions in a company?
the overall marketing strategy of the company
A company that sets prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for the company's effort and risk is using which pricing strategy?
Cost-based pricing
Which of the following involves introducing less-expensive versions of established, brand name products?
good-value pricing
