Marketing Management Final Chapter 11

_______ remits monies to purchasers after the fact

Allowances

You should be careful when using _______ pricing, as it is always possible that the quantity demand it will not match the marketing managers forecast

Average - cost

HP sells an inexpensive printer for an entry level user, but the printer cartridges that need continue replacement are fairly expensive. This demonstrates the concept of ________.

Captive pricing

Solid Surface, a countertop store, will give customers a 10% discount if they pay their bills in full in 20 days; however, after 20 days they do not receive a discount. This is an example of a _______.

Cash discount

______ could lead the marketing manager to decide to price at some market average price, or perhaps above or below it in the contacts of penetration or skimming objectives.

Competitor - based pricing

The internal processes Southwest Airlines are highly efficient, giving it a competitive advantage over other airlines. Southwest has a very efficient maintenance process and also has a very simple process of booking passengers. Because of these efficiencies, the company is able to offer customers an appealing mileage-driven pricing structure while also increasing the airlines profit margin. In this scenario, Southwest competitive advantage is based on

Cost leadership

Which of the following free on board (FOB) pricings indicates that until the goods arrive at the purchasers location, title doesn't change hands and freight charges are the responsibility of the seller?

FOB-Destination

_____ is the amount of price increase that can be taken without affecting customer demand.

Just noticeable difference (JND)

James is trying to determine the best price for his new fishing poles and thus uses the sales price as a basis of calculating the markup percentage. He is using a _______ approach.

Markup on sales price

In markets were customers are sensitive to price and where internal efficiencies lead to cost advantages allowing for acceptable margins even when aggressive pricing, a _______ strategy can create a powerful barrier to market entry for other firms

Penetration pricing

_______ is a critical component that placed into a customer's assessment of the value afforded by a firm and it's offerings.

Price

I'm proposing a _________ strategy, the marketing manager usually is convinced that a strong price-quality relationship exist for the product

Price skimming

Companies that collude to set prices at a mutually beneficial high level or engaged in ______?

Price-fixing

Yoko is trying to explain to one of her ticket counter associates the differences in price associated with concert tickets. She explains that the lowest - price tickets are for the least desirable seats and the highest - price tickets are for the most desirable seats, with the rest of the ticket price is falling somewhere in between. Yoko is describing _______ product pricing

Product line

Priceline.com is a firm that serves as a clearing house for extra capacity from airlines, hotels, and cruise lines. It is an example of a firm that uses an _______ strategy

Reverse auction

In markets were customers typically witness rapidly changing prices, ________ can provide a source of competitive advantage

Stability pricing

________ provide an incentive to a channel member for performing some function in the channel that benefits the seller, such as stocking a product or performing a product service.

Trade discounts

For most products, as long as the customer perceives the ratio of price and benefit to be at least equal, perceptions of ______ will likely be favorable

Value

When Claire purchased her new cell phone, she was offered an opportunity to purchase a car charger and a cover together at a reduced price. The cell phone provider was using a ________ strategy.

price bundling