Marketing Ch 16

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Which of the following possible consumer reference prices is generally unavailable to a​ consumer?

Actual future price

Which of the following results in a tangible increase in​ price?

Escalator clauses

Which of the following is one of the questions a company needs to consider in a homogeneous product​ market?

How can we enhance our augmented​ product?

When a manufacturer wants to earn a specific percent on​ sales, what should be determined to calculate the sale​ price?

Markup price

Which of the following is a true statement about price​ elasticity?

Price elasticity depends on the magnitude and direction of the contemplated price change.

When are buyers more price​ sensitive?

When buyers can store the product

Where pricing is a key competitive factor​ (aerospace, railroads, and oil​ companies), companies often establish a pricing department to set or assist others in setting appropriate prices. According to​ research, in​ B-to-B settings, pricing performance improves under what​ circumstances?

When pricing functions are spread horizontally across the​ sales, marketing, and finance units

To protect a company from inflation on contracts for major industrial​ projects, such as aircraft construction or bridge​ building, ________ requires the customer to pay​ today's price and all or part of any inflation increase that takes place before delivery.

an escalator clause

One of the weaknesses of using surveys to estimate the demand curve is​ ________.

consumers exaggerate their willingness to pay for new products and services

Dollar stores base their strategy around extreme​ ________, cutting the costs associated with constant sales and promotions and increasing consumer confidence in everyday shelf prices.

everyday low pricing

Jordan pays overhead each​ month, including her​ company's bills for​ rent, heat,​ interest, and​ salaries, which are examples of​ ________.

fixed costs

If a calculator company produces​ 100,000 hand calculators at a cost of​ $10, but the cost drops to​ $9 when it produces​ 200,000 and​ $8 when it produces​ 400,000 hand​ calculators, the decline in average cost with accumulated product experience is called the​ ________.

learning curve

The Internet enables sellers to discriminate between​ buyers, and buyers to discriminate between sellers. One of the ways a seller can use the Internet to discriminate between buyers is by​ ________.

monitoring customer behavior to tailor offers to individuals

When PepsiCo sold its cola syrup to Russia for rubles and agreed to buy Russian vodka at a certain rate for sale in the United​ States, it was engaged in the form of countertrade known as​ a(n) ________.

offset

The first step in setting pricing policy is​ ________.

selecting the pricing objective

When ConAgra foods decided to cut​ $250 million in costs to return to a​ $1 price point​ (after sales dropped as a result of raising prices​ $0.25 to cover higher commodity​ costs), it was using​ ________.

target costing

Among the best practitioners of​ ________, or charging a fairly low price for a​ high-quality offering, are​ IKEA, Target, and Southwest Airlines.

value pricing

When would pricing cues such as sale signs and prices that end in​ "9" be less meaningful for​ consumers?

when consumers are experienced in the category

The three​ C's model for price setting includes​ ________.

​costs, competitors'​ prices, and​ customers' assessments of unique features

When a museum charges a lower admission fee for students and senior​ citizens, it is engaging in​ ________ pricing.

​customer-segment

When the seller absorbs part or all of the risk of a​ purchase, in the event the purchase does not deliver the full promised​ value, what type of pricing is being​ used?

​gain-and-risk-sharing pricing

When Sony introduced the first​ high-definition television to the Japanese market in​ 1990, it was priced at​ $43,000, which is an example of​ ________ pricing.

​market-skimming

Caterpillar uses​ ________ to set prices on its construction​ equipment, and justifies a higher price by showing lower lifetime operating costs.

​perceived-value pricing

The trap associated with a​ price-cutting strategy where a​ higher-priced competitor matches lower prices but has longer staying power because of deeper cash reserves is the​ ________.

​shallow-pockets trap

Back-to-school sales in August are an example of​ ________.

​special-event pricing


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