Exam 20: Pricingdecisions

Competition-based pricing is important if competing products are almost homogeneous or if price is the key variable in the marketing strategy.

If Norelco introduced a new electric razor that sonically removes hair and priced it first at $175 and then at $150 before reducing the price to $100,the firm's initial pricing strategy is known as

Grocery stores that position their less expensive,private brands next to more expensive,well-known manufacturer brands on the shelf are using the concept of reference pricing.

Which pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry?

The decision of Macy's to use even prices such as $60 for a Ralph Lauren Polo shirt is an application of odd-even pricing,and even prices are often used to

The way that pricing is used in the marketing mix will influence the determination of the final price.

Research indicates that both market share and ____ are good indicators of profitability.

Marketers improve their ability to establish prices appropriately when

The objective of maintaining or increasing market share depends on growth in industry sales.

The six stages of setting prices should always be followed if prices are to be set correctly.

When a company adjusts price levels so that it can increase sales volume to levels that match the organization's expenses,it is said to employ a ____ objective.

Pricing the basic product in a product line low while pricing related items at a higher level is called

Which of the following pricing strategies often results in a retailer losing money on the product?

If Kroger Food Stores advertises 2-liter bottles of Pepsi for 89 cents to generate store traffic that will purchase other items at regular prices,the grocer is using

Prestige pricing is used when a higher price is consistent with buyers' attitudes toward the quality or image of a product.

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time.

If a product is priced based on how many or how few people want it at a particular time and place,____ pricing is being used.

Markup is measured either as a percentage of ____ or a percentage of ____.

Penetration pricing and price skimming of the market are two types of new-product pricing.

In some cases,prices are assigned to goods on the basis of nothing more than custom.