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Exam 21: Setting Prices

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Question 41

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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.

A) markup
B) demand-based
C) competitive
D) peak
E) differential

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Question 42

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A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans,priced at $24.99,is positioned next to a national brand of jeans,such as Levis,priced at $39.99.What is the manager attempting to accomplish?

A) Everyday low prices strategy
B) Odd-even pricing strategy
C) Prestige pricing strategy
D) Special-event pricing strategy
E) Reference pricing strategy

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Question 43

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Westin Hotels,Inc.has an objective of achieving a 25 percent return from its overall sales.This is an example of a ____ pricing objective.

Some grocery stores collect data on competitive prices

Some stores employ comparison shoppers to learn what prices their competitors are charging.

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

Scenario 21.1 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 21.1.If Ray-Ban selected the prices for its new sunglasses to be $60,$70,or $80,this would most likely be an example of using ____ pricing to enhance its distinctive positioning strategy.

Periodic discounting is often predictable so consumers wait to make purchases until they can benefit from the price reductions.

Competition-based pricing is

A pricing strategy is a course of action designed to achieve pricing and marketing objectives.

Two types of new-product pricing are price skimming and product-line pricing.

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

A manager at Kohls discovers that Macy's has reduced the price of its children's Levi's from $31.99 to $24.99,according to an advertisement in the Sunday newspaper.She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads,"SALE: $24.99." This is an example of what pricing strategy?

When establishing prices,a marketer's first step is to

A company wanting to maximize profits from its new product would use product-line pricing.

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

The manager at Target puts a sign up next to a Samsung audio system that reads,"Only $299.99! $60 less than at Best Buy ." This is an example of what type of pricing strategy?

Cost-based pricing results in a high price when demand is high and a low price when demand is low.

It is usually easy to obtain an accurate price list for a competitor's products.

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