Exam 11: Manage Pricing Decisions

________ remit monies to purchasers after the fact.

Firms frequently rely on combinations of pricing tactics in the marketplace rather than putting all their eggs in one basket.

Which of the following free on board (FOB) pricings indicates that until the goods arrive at the purchaser's location, title doesn't change hands and freight charges are the responsibility of the seller?

It can be useful for customers to have some type of comparative price when considering a product purchase. Such a comparison is referred to as ________ pricing, which in the case of price bundling is the total price of the components of the bundle if purchased separately versus the bundled price.

The internal processes at Southwest Airlines are highly efficient, giving it a competitive advantage over other airlines. Southwest has a very efficient maintenance process and also has a very simple process of booking passengers. Because of these efficiencies, the company is able to offer customers an appealing mileage-driven pricing structure while also increasing the airline's profit margin. In this scenario, Southwest's competitive advantage is based on ________.

HP sells an inexpensive printer for an entry-level user, but the printer cartridges that need continual replacement are fairly expensive. This demonstrates the concept of ________.

Average-cost pricing is a method for determining the price of an offering by adding a standardized markup on top of the costs for the offering.

Define the concept of cost leadership. Explain how a company might achieve cost leadership and the primary benefits to be gained.

In proposing a ________ strategy, the marketing manager usually is convinced that a strong price-quality relationship exists for the product.

Among the marketing mix variables, price is the easiest and quickest to alter, so sometimes firms overuse price changes to stimulate additional sales or gain market share.

When Claire purchased her new cell phone, she was offered an opportunity to purchase a car charger and a cover together at a reduced price. The cell phone provider was using a ________ strategy.

Price objectives are the desired or expected result associated with a pricing strategy and must be consistent with other marketing-related objectives, such as positioning or branding.

With prestige pricing, some of the traditional price/demand curves cannot properly predict sales or market response because it violates the common assumption that increasing price decreases volume.

Michael Porter has consistently advocated that firms that are able to compete based on some extraordinary efficiency in one or more internal processes bring to the market a competitive advantage based on ________.

The Robinson-Patman Act addressed price discrimination by prohibiting a seller's ability to offer different prices to different customers without a substantive basis.

To set an exact price for goods or service, marketing managers should consider more than one method of calculation to arrive at the optimal price.

________ is a critical component that plays into a customer's assessment of the value afforded by a firm and its offerings.

Since a product's price tends to be invisible, customers rarely have trouble moving past price to consider other critical benefits the product affords.

Deceptive pricing refers to the collusion among companies to set mutually beneficial high prices and limit competition.

________ are direct, immediate reductions in price provided to purchasers.