MKT304 Quiz 14
Customers must see value in a product or service before they are willing to exchange time or money to obtain it, but not all customers see the same value in a product. To analyze how many units will be sold at any given price point, marketers draw on
A demand curve
The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the
Break-Even point
If all three grocery stores in town decide to charge the same price for a gallon of milk, what type of pricing tactic is being used?
Horizontal price fixing
Consumers generally believe that ________ is one of the most important factors in their purchase decisions.
Price
If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is
Price elastic
Bernard's firm has set corporate direction to become one of the leaders in each of its significant market segments. It was Bernard's job to examine the firm's pricing strategy to determine how to maximize market share, even at the expense of profits in the short run. What kind of company objective would guide Bernard's effort?
Sales-oriented
According to a typical demand curve, the higher the price,
The lower the quantity consumers will buy
All of the following are included in the five Cs of pricing except
collaboration
When firms set prices similar to those of competitors, they are following a strategy of
competitive parity
When Ursula decides how to price new products in her gift store, she measures the value of her product offerings against those of the other stores in her area. Ursula uses a ________ pricing strategy.
competitor-oriented
Julia wants her firm's gourmet snacks to be the leading brand in the U.S. market. When adopting a pricing strategy designed to gain market share, she should remember that
rarely is the lowest-price offering the dominant brand in a market.
Brad always buys and uses Nike brand golf balls. If he finds a Titleist or Callaway ball in the rough, he gives it away. Brand-loyal golfers like Brad allow Nike to charge a higher price and not lose many sales. By building a strong brand, Nike has effectively
reduced the price elasticity of demand for its products
David manages a Shoney's restaurant. He is considering staying open later in the evening. For David, the variable costs associated with staying open longer hours will include all of the following except
rent on the restaurant building
Predatory pricing
selling a product below cost to drive competitors out of the market
Ryan gave the manager of his convenience store a set of binoculars so she could see the gasoline prices charged by the other convenience store at that intersection. Ryan told the manager to always match the gasoline prices of the other store. Ryan is using a ________ pricing strategy.
status quo
Rodi owns Hallman's auto repair service. He has observed over the years that customers keep their high-mileage cars longer when the economy is doing poorly, creating demand for his maintenance and repair service. Rodi has observed the impact of ________ on demand for his service.
the income effect
Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how ________ impacts demand for products.
the income effect
A customer orientation toward pricing implicitly invokes the concept of
value
A strategy of setting prices based on how customers develop their perceptions of value can often be the most effective pricing strategy, especially if the strategy
is supported by consistent advertising and distribution strategies