Exam 14: Pricing Strategies

A private-label product priced below the lower limit can be regarded as too cheap by potential customers.

Which of the following statements is true about the forecasting technique known as the "Delphi Technique"?

Which of the following statements is true about the forecasting technique known as "trend analysis"?

Which of the following is an example of a quantitative forecasting technique?

You are a staunch environmentalist. When hybrid vehicles were introduced, the supply was very limited. Buyers were paying a premium over the listed manufacturer's suggested retail price (MSRP). At that time, your budget could not stretch that far, but you still wanted to own a car that does not depend on petroleum products. By waiting, you find that the automobile dealers have announced that their shipments of new hybrid cars have increased by 10 percent. Meanwhile, the average price of regular gasoline rose from $3.30 to $3.63 per gallon. ​ ​Required: If the price elasticity of demand for new hybrid cars is 1.25 and for gasoline is 1.0, what was the effect on the prices of a new hybrid car and on gasoline?

The price elasticity of demand (or elasticity of demand) is the percentage change in the quantity of a good or service demanded divided by the percentage change in its price.

Skimming is an effective strategy to use when products are distinctive or have little competition.

Compare and contrast the three pricing strategies: skimming, penetration, and competitive. How does each strategy help an organization achieve certain objectives?

Which of the following statements is true about the forecasting technique known as the "jury of executive opinion"?

As the marketing director for a chain of mid-priced hotels, you've been directly involved in the development of a new hotel in the organization. This new Boston location will be quite different, with more amenities, better furnishings, and bigger rooms. Your boss, the CEO, has asked you to review several different pricing options and pick the one that sends a clear message to consumers. Which one do you choose?

Your friend Claire has just shared that she dreams of owning a world-famous Hermes Birkin handbag someday. When you inform her that there is a waiting list for these exclusive handbags, which usually sell for $12,000 and up, she says she's waiting for them to go on sale. What do you know about pricing that would influence how you respond?

Which of the following pricing strategies tries to reduce the emphasis on price as a competitive weapon?

Which of the following is the best example of supply?

A low price is a sure sell because the demand for many goods is highly elastic.

Don intends to use promotional pricing as an ongoing part of the marketing strategy for his automotive supply store. Because you are his friend - and have years of experience in retail marketing - you feel obligated to tell Don that he should rethink this plan. What point(s) do you make?

Which of the following is the best example of demand?

While price offers a dramatic means of achieving competitive advantage, it is the most difficult marketing variable for competitors to match.

Market ___, which refers to the condition when suppliers make just enough of a product and price it in a way that consumers buy it all, rarely happens and is usually temporary.

When you launched ImagineIt five years ago, you knew your revolutionary mini 3D printers would be wildly popular with home users, so a skimming pricing strategy was the obvious choice. Since then, a couple of competitors have entered the market, and supply has pretty much caught up with demand. Where do you go from here?

Brandon recently completed law school, passed the bar exam and began working for a prestigious law firm in Dallas, TX. The firm has a strict dress code and Brandon is required to wear business suits, dress shirts, ties, and dress shoes. He is investing in a new wardrobe and visited Men's Discount Warehouse to purchase new clothes. He shared his situation with Tim, his sales representative, and Tim told him that if he bought 2 suits, he would receive 2 dress shirts, 3 ties, and 2 pairs of socks for free. Which of the following statements is TRUE regarding this example?