Exam 11: Manage Pricing Decisions

Solid Surface, a countertop store, will give customers a 10 percent discount if they pay their bills in full in 20 days; however, after 20 days they do not receive a discount. This is an example of a ________.

Firms and brands that continually attempt to operate in the high-price/low-benefits environment do not survive over the long run as customer trust is damaged.

________ refers to products sold at prices below cost to attract shoppers to a store.

Edvard works at a ski shop. He has just gotten a shipment of new snowboards and realizes that the company has priced its snowboards higher than the rest of the boards in his shop. Since Edvard took a marketing class in college, he knows that the company is most likely using ________.

For the marketing manager, pricing is merely an economic break-even point or a cost-plus accounting calculation.

________ could result in overall higher prices for consumers since various competitors are all pricing the same to maximize their profits.

Veggie Vitality will send retailers a check if the retailer successfully includes its vegetable-based smoothies in promotional efforts. Veggie Vitality uses ________ to incentivize retailers.

A variable pricing strategy makes planning and forecasting much easier than a one-price strategy.

When formulating a response to a competitor's price reduction, firms should consider their offering from the perspective of its overall value proposition to customers.

You should be careful when using ________ pricing, as it is always possible that the quantity demanded will not match the marketing manager's forecast.

________ is used by firms that rely on periodic heavy promotional pricing, primarily communicated through advertising and sales promotion, to build traffic and sales volume.

Priceline.com is a firm that serves as a clearinghouse for extra capacity from airlines, hotels, and cruise lines. It is an example of a firm that uses a(n) ________ strategy.

Hector is opening an appliance store. He has estimated a monthly profit goal based on his anticipated expenses and earning goals and uses it to set product prices. Hector is implementing a ________ pricing strategy.

Marco wants to buy a new car that is of good quality and available at an affordable price. After exploring the available options, Marco decides to purchase a car made by a popular car manufacturer, which has a high retail price but offers very low operating and maintenance costs. In this scenario, the pricing strategy employed by the car manufacturer is ________.

A promotional allowance offers retailers the opportunity to receive some compensation from product marketers for the costs of successful product promotions.

When a seller advertises an item at an unbelievably low price to lure customers into a store, and then refuses to sell the advertised item and instead pushes a similar item with a much higher price and higher margin, the seller is participating in the illegal practice of ________.

________ affords the marketing manager an opportunity to develop a rational pricing strategy across a complete line of related items.

________ provide an incentive to a channel member for performing some function in the channel that benefits the seller, such as stocking a product or performing a product service.

A competitor's price is one of the most visible elements of its marketing strategy; analyzing historical and current pricing patterns may allow firms to determine the competitor's pricing objective.