Business Marketing CH 19,20

Running a big sale in order to generate enough cash to pay creditors can occur in a situation in which a firm's primary pricing objective is

survival.

​Marginal analysis involves examining

​what happens to a firm's costs and revenues when production is changed by one unit.

When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as

Price Lining

Odd-even pricing is

a psychological pricing strategy.

Sara buys a new dress at Marshalls that has a price tag with "Compare at $150.00. Our Price $89.99." This is an example of the use of

an external reference price.

When Aisha and Darius are planning their honeymoon, their travel consultant tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of

bundle pricing.

The three primary bases for developing prices are

demand, competition, and cost.

A price developed in the consumer's mind through experience with the product is called a(n)

internal reference price

Adidas is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales

market share

Price is considered to be the variable in the marketing mix that is

most flexible

Sellers that emphasize distinctive product features to encourage brand preferences among customers, rather than price, are practicing

nonprice competition

If Kashi wants to gain a large market share quickly with its new line of reduced-fat snack crackers, it should use

penetration pricing.

An ad for a new Mercedes automobile states, "The best, or nothing." It is likely that Mercedes is using _________ pricing.

prestige

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

price competition.

If Braun introduced a new electric razor that sonically removes hair and priced it first at $175 and then at $150 before reducing the price to $100, the firm's initial pricing strategy is known as

price skimming.

Services that are performed by lawyers, dentists, or doctors are typically priced using ____; sometimes these prices are not based on the amount of time that is spent in each situation, but are based on a flat fee regardless of the difficulty involved.

professional pricing

Aloft Hotels, Inc. has an objective of achieving a 25% return from its overall sales. This is an example of a ____ pricing objective.

profit

If Umbro faces a standard demand curve that exists for most products, as it raises the price of its soccer balls, the

quantity demanded goes down.

Premium-priced products are usually marketed through

selective or exclusive distribution.

Price is a key element in the marketing mix because it relates most directly to

the generation of total revenue.