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Exam 9: Pricing: Capturing Customer Value

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Question 21

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When a gift card shop offers a price reduction to customers who buy Christmas cards in the week after Christmas,it is giving a(n) ________ discount.

A) functional
B) time-based
C) annual
D) deep
E) allowance

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Question 22

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________ pricing is a price-adjustment strategy in which the company sets different prices for different customers,product forms,places or times.

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Question 23

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The National Gallery has different admission prices for students,adults and seniors.All three groups are entitled to the same services.This form of pricing is called ________.

Market-skimming is a more popular strategy for pricing new products,while market-penetration is a more popular strategy for pricing products that are more advanced in the product life-cycle.

Which of the following presents the strongest reason that mark-up pricing generally does NOT make sense?

In retail settings,________ involves charging a constant low price with few or no temporary price discounts.

The practice of a manufacturer requiring a dealer to charge a set retail price for its product,also known as retail price maintenance,is illegal.

Which of the following would NOT support a market-skimming policy for a new product?

Low cost carrier,Tiger Airlines,controlled some 5 per cent of the market when the Civil Aviation Authority ordered its suspension amid safety concerns.Although executives at QANTAS and Virgin Australia felt certain that they would pick up extra demand as a consequence of Tiger's closure,most customers who would normally have travelled with Tiger elected to forgo travel entirely rather than fly with one of the premium airlines.The segment's reluctance to switch airlines should be interpreted as an indication of its price sensitivity.

Consumers use price less to judge the quality of a product when they ________.

When a car manufacturer provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs,it is granting a(n) ________.

In the laundry detergent category,Unilever markets a number of premium brands including Omo and Drive.In addition,it markets the low-priced alternative Surf,whose main role is to compete with the budget brands and protect the integrity of the Unilever's premium brands.Surf is best described as a ________.

When a car manufacturer offers a ________,customers may purchase a vehicle from a dealership within a specified time period and are able to negotiate attractive terms and trade-in allowances with the dealer,none of which affect the size of the cheque sent by the manufacturer in the post-sale period.

In service industries,captive-market pricing is called ________ - ________ pricing.

A store prices its confectionery displays at ten different price levels,ranging from $2.00 per kilo to $4.95 per kilo.This is an illustration of price steps.

Price ________ indicates how responsive demand will be to a change in price.

Value-based pricing is being used when costs vary directly with the level of product.

With an understanding of price elasticity,sellers should know that the less elastic the demand for their product is,the more advantageous it is for them to ________.

When an international company is attempting to enter a less-affluent emerging market,_____ becomes a key element in the international marketing strategy.

Under ________ competition,the market consists of a few sellers who are highly sensitive to each other's pricing strategies.