Marketing Strategy Session 5 Quiz

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In pricing strategy, what should be considered when assessing whether a product is expensive or not?

Tradition and rituals around the product

Ingredients used in the product

Scarcity of the product

Reference within a determined competitive set (correct)

What is one of the key elements to justify a higher price according to the text?

Reducing the product size

Focus on production process and ingredients (correct)

Decreasing the quality of the product

Emphasis on regular promotions

Which factor plays a role in psychological post-rationalization of increased prices?

Scarcity of the product (correct)

Regular availability of the product

Frequent discounts on the product

High demand for the product

What should pricing strategies have a good understanding of according to the text?

Price elasticity Signup and view all the answers

What is mentioned as a factor to watch out for in pricing according to the text?

Setting prices solely based on costs Signup and view all the answers

What is a recommended approach to assess whether a product is expensive or not according to the text?

Considering a reference within a competitive set Signup and view all the answers

What is the main goal of the premiumization strategy?

To make consumers pay more for a product or service Signup and view all the answers

What does premiumization strategy entail in terms of pricing?

Increasing prices to position the product as more valuable Signup and view all the answers

In which demand spaces are premium products typically bought above the median price?

Special/social consumption Signup and view all the answers

How do 80% of products in routine/non-social consumption demand spaces get purchased?

Below the median price Signup and view all the answers

What is a key factor that influences the choice of premium goods according to the text?

Impulse buying tendencies of consumers Signup and view all the answers

How does premiumization strategy impact consumer purchasing behavior?

It influences consumers to pay higher prices based on perceived value Signup and view all the answers

What is the formula to calculate price elasticity?

Change in volume / Change in price Signup and view all the answers

In the context of premiumization, what does high price elasticity indicate?

Changing the price has a big impact on volume Signup and view all the answers

According to Premiumization Strategy 1, how does price elasticity vary?

According to the occasion/circumstance Signup and view all the answers

How does impulse and availability affect pricing, according to Premiumization Strategy 1?

Price elasticity varies according to the occasion/circumstance Signup and view all the answers

What does Premiumization Strategy 1 suggest about pricing and the competitive set?

Prices within the competitive set should vary based on occasion Signup and view all the answers

Why is it important for brands to 'earn' the right to increase prices according to Premiumization Strategy 1?

To align pricing with perceived value and benefits Signup and view all the answers