MARKETING CHAPTER 14

When firms set prices similar to those of competitors, they are following which strategy?

COMPETITIVE PARITY

Julia's is an upscale women's clothing store. Prices are based on customers' beliefs about the value of the clothing. The store focuses on a limited target market and provides excellent customer service. Julia's is using a _______ pricing strategy.

CUSTOMER ORIENTED

Traditional demand curve economic theory is used by marketers to understand what in the five Cs of pricing?

CUSTOMERS

The price elasticity of demand for a teeth-whitening kit is what?

ELASTIC

Unlike product, promotion, or place, price is the only part of the marketing mix that does what?

GENERATES REVENUE

Sharon knew that her established customers liked her product much better than her competitor's. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Sharon was considering what approach?

PREMIUM PRICING

Consumers generally believe that __________ is one of the most important factors in their purchase decisions.

PRICE

A demand curve shows the relationship between what during a specific period of time?

PRICE & QUANTITY

When Delta increases its average fares, American Airlines and United often follow with similar increases. This is an example of what?

STATUS QUO PRICING

There are many options available to consumers when it comes to breakfast cereals. So, if Kellogg's significantly increases the price of Rice Krispies, consumers are more apt to buy alternate cereals instead. This illustrates which concept?

THE substitution EFFECT