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