Ch 13

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

means allowing employees to make decisions about how service is provided to customers

Empowerment

Cross-price elasticity is the

Percent change in quantity demanded of product A compared to the percent change in the price of product B

There is an old saying, "If you have to ask the price of a yacht, you cannot afford it." Products like yachts are most likely to be associated with

Prestige pricing

When CarMax promises a "no-haggle" pricing structure, it exhibits _________ because it provides additional value to potential used car buyers by making the process simple and easy.

a customer orientation

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

By providing good customer service, firms __________ their products or services.

add value to

developing marketing strategies why is price often the most challenging of the 4 p's to manage

because it is the least understood element of the marketing mix

A service is any intangible offering that involves a deed, performance, or effort that

cannot be physically possessed

all of the following are included in the 5 c's of pricing except

collaboration

When there is a significant difference between the service customers receive and the service the firm promotes the firm has a

communication gap

The service gap model is designed to highlight those areas where

customers beleive they are getting less or poorer service than they should

the customers at marielles coffee shop want to grab a quick cup of coffee before boarding the commuter train into the city. the sign in the window promises quick in and out service. usually the shop keeps the promise but one morning customers were frusterated when the staff showed more interest in gossiping about their social lives than waiting on customers

delivery Gap

Along the service-product continuum, which of the following would be considered the most service dominant?

doctors office

the price elasticity of demand of a teeth whitening kit is -1. The market for this product is considered

elastic

When it comes to measuring consumers price sensitivity products are viewed as either

elastic or inelastic

The Broadmoor Hotel in Colorado Springs, Colorado, maintains its five-star rating by focusing on five service characteristics: reliability, responsiveness, assurance, empathy, and tangibles. employees are instruceted to listen and observe carefully to determine a guest's name which service characteristic is this

empathy

along the service product continuum which is the most product dominant

grocery store

which of the following refers to variability in a services quality

heterogeneity

A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n) ________________ price elasticity demand.

inelastic

The price elasticity of demand for a specific brand of deodorant is 1. The market for this product is considered

inelastic

When marketers state that services are __________, they are referring to the fact that services cannot be touched tasted or seen like a pure product can

intangible

David's marketing research returned the finding that customers were staying away from his bookstore because of a lack of services like gift cards, return policies, and special orders. David was shocked. "Nobody ever asks about that stuff! If it were that important, people would ask about it." David is likely suffering from a(n) ________ gap.

knowledge

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

premium pricing

consumers generally beleive that _____ is one of the most important factors in their purchasing decisions

price

a demand curve shows the relationship between ____ during a specific period of time

price and demand

all of the following are included in the full price of a product or service except

price of alternative products and services

The marketing of services differs from product marketing because services are all of these except

renewable

Health clubs often use a low, introductory offer price to get people to join their club. These low prices represent a ______________ pricing strategy.

sales orientation

If there is a difference between the firm's perceptions of customers' expectations and the service standards the firm has set, a __________ gap exists.

standards

Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell. Naomi is using a _______________ pricing strategy.

target return

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

According to a typical demand curve, the higher the price,

the lower the quantity consumers will buy

Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers'__________, the difference between what her customers want and what they will accept before going elsewhere.

zone of tolerance