Exam 20: Pricingdecisions

Which of the following would be used in setting the price of a new product if considerable competition is expected?

Sony management decided to use skimming as a pricing strategy for its newest line of high-definition television (HDTV)sets.It should be aware that this strategy does not

A penetration pricing strategy is particularly appropriate when demand is

The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called

What type of pricing objective would an organization use if it were in a favorable position and desired nothing more?

The use of price skimming discourages competitors from entering a market.

Use the following to answer the questions. Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department stores.The new line would be positioned as a more distinctive brand than the typical glasses sold through department stores,and would be priced higher than other brands in the store,but a lower price line than the current Ray-Ban lines that are sold through more selective stores.In determining the price for this sunglass line,Ray-Ban wants to gather information about all brands sold in department stores and about customers' perceptions of those brands. -Refer to Scenario 20.1.Ray-Ban's plan of gathering information about the other brands sold in department stores,including their prices,would most likely be used in a ____ basis for pricing.

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing.

Under what conditions would a marketer most likely use a price leader strategy?

Pricing strategies and methods

If General Motors determines that it wants to sell 200,000 Chevrolet Acadias and sets the price at $29,500 because it knows that at that price it will reach that goal,the firm would be using a ____ pricing method.

Differential pricing is effective mainly when focusing on only one market segment.

When businesses charge the highest possible price that customers who really want the new product will pay,they are using

For custom-made equipment or commercial construction projects,which pricing method is most likely used?

Explain differential pricing and then describe the four major types.

Maintaining or increasing market share

An early-bird special offered by a restaurant during off-peak hours is an example of the secondary-market pricing strategy.

Use the following to answer the questions. Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department stores.The new line would be positioned as a more distinctive brand than the typical glasses sold through department stores,and would be priced higher than other brands in the store,but a lower price line than the current Ray-Ban lines that are sold through more selective stores.In determining the price for this sunglass line,Ray-Ban wants to gather information about all brands sold in department stores and about customers' perceptions of those brands. -Refer to Scenario 20.1.Ray-Ban has decided to promote the new sunglass line as an "affordable luxury" and plans significant promotional expenditures.With these objectives,which of the following should Ray-Ban use to price its product line?

A cost-based pricing method commonly used in retail is called

During July and August,Lakewood Links Golf Course,located in South Carolina,offers weekday rates of $13 for a round of golf with a cart.During the rest of the year,the weekday rates are between $25 and $35.This is an example of the use of