Marketing Ch. 15 Quiz
Terms in this set (25)
In determining the price for his company's new pocket digital camera, Matt determines what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of __________ on pricing strategy.
Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price
Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model
innovators and early adopters
A reference price is
the price against which buyers compare the actual selling price
When Apple Computer Company introduced the iPhone—a combination phone, MP3 player, and Internet access device—in 2007, it was priced at $499, considerably higher than either the iPod or competing cell phones. Apple was probably pursuing a __________ pricing strategy.
Retailers often require manufacturers to pay _________ in order to obtain shelf space for new products.
With a __________ pricing strategy, marketers set a low initial price for the introduction of a new product or service.
Retailers use ____________ to get rid of slow moving or obsolete merchandise.
Developing pricing strategies for __________ is one of the most challenging tasks a manager can undertake.
Dan is especially price sensitive. He has been known to line up on "Black Friday" (the day after Thanksgiving) at 4 a.m. in order to be among the first to buy sale items. Dan would likely respond to a __________ pricing strategy.
In determining the price for his company's new personal computer photography printer, Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market. Raymond is using __________ pricing.
cost of ownership
One of the difficulties associated with value-based pricing is that
It necessitates a great deal of consumer research to be implemented successfully
Pricing __________ products is especially challenging because little or nothing is known about consumers' perceptions of value.
An everyday low pricing strategy stresses the continuity of retail prices
At a level somewhere between the regular price and the deep-discount sale prices competitors may offer
Firms using a(n) ____________ pricing method set their prices relative to what other firms are charging.
Everyday low pricing (EDLP) provides value to consumers by
reducing their search costs
For a price skimming strategy to be successful,
it must be difficult for competitors to enter the market
A weakness associated with cost-based pricing methods is that they
Do not recognize the role that consumers or competitors' prices play in the marketplace
The __________ occurs when unit cost drops as the quantity sold increases.
experience curve effect
The saying "leaving money on the table" is associated with
Using a market penetration strategy when there is an opportunity for price skimming
When Toyota introduced its Scion line of cars, the lowest priced model was listed for $15,000 while the highest priced model was listed for $21,000, with two or three other list prices in between. Toyota used a __________ pricing approach.
In determining the price for his company's new small business accounting software, Raymond is assessing how much better the software is as compared to alternative products available in the market. Raymond is using __________ pricing.
Mario is the first retailer in town to sell games for Sony's new PlayStation 3 machine. Mario wants to quickly capture as much of the market for the new games as possible. Mario will likely use a __________ pricing strategy.
When Sheila decided to sell her shoe racks on eBay, she stated the price and a shipping rate according to delivery area. Which method of pricing was Sheila using?
The major objectives associated with a market penetration pricing strategy are to
quickly build sales and market share
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