Exam 11: Manage Pricing Decisions

________ can occur when a company purposefully makes pricing decisions to undercut one or more competitors and gain sales and net market share.

A company's core cost advantages translate directly to an edge over its competitors based on much more flexibility in its ________ as well as its ability to translate some of the cost savings to the bottom line.

To use target return pricing, one must first calculate total ________ costs.

Jean Claude has just completed a new line of designer handbags. He wants the price to communicate to the customer that the handbags are high quality and exclusive, so he sets the price high. He knows that after this season, the price may need to decrease as the market evolves. Jean Claude is using a ________ strategy.

When shipping prices are dependent on geographic areas based on the distance from the shipping location, it is considered ________ pricing.

In markets where customers typically witness rapidly changing prices, ________ can provide a source of competitive advantage.

________ is the amount of price increase that can be taken without affecting customer demand.

In product line pricing, the escalation of product prices up the product line does not depend on prices competitors are charging for similar products.

Yoko is trying to explain to one of her ticket counter associates the differences in price associated with concert tickets. She explains that the lowest-priced tickets are for the least desirable seats and the highest-priced tickets are for the most desirable seats, with the rest of the ticket prices falling somewhere in between. Yoko is describing ________ pricing.

Bright House wants Madhukar to buy the full gamut of entertainment products, and the more he buys-digital television, premium channels, downloadable movies, local and long-distance phone service, cellular service, high-speed Internet-the better the deal becomes compared to the total of the individual prices of each product. Bright House is using a ________ strategy.

For most products, as long as the customer perceives the ratio of price and benefit to be at least equal, perceptions of ________ will likely be favorable.

Marriott has branded its entire family of accommodations based on different value propositions, supported by clearly delineated pricing strategies. Its offerings include Ritz-Carlton and JW Marriott for the most discriminating patron, Marriott and Renaissance at the next level of full service, and an array of differentially positioned brands such Courtyard and Residence Inn. This is an example where ________ can occur at a level much broader in scope than individual products.

________ could lead the marketing manager to decide to price at some market average price, or perhaps above or below it in the context of penetration or skimming objectives.

Pricing objectives very frequently are designed to maximize profit, which necessitates a ________ pricing strategy.

Creating a perception about price merely from the image the numbers provide the customer demonstrates ________ pricing.

A firm attempts to find a neutral set point for price that is neither low enough to raise the ire of competition nor high enough to put the value proposition at risk with customers. The firm is adopting a(n) ________ pricing strategy.

Firms that have an objective of utilizing pricing to communicate positioning use a ________ strategy.

You are a marketing manager and have determined that to meet your company's financial objectives, you will need to increase the bottom line contribution of your product. What are three creative approaches you might take beyond just considering a price increase?

In the past, ________ allowed manufacturers to establish artificially high prices by limiting the ability of wholesalers and retailers to offer reduced or discounted prices.

When a firm's objective is to gain as much market share as possible, a likely pricing strategy is ________, sometimes also referred to as pricing for maximum marketing share.