Podcast
Questions and Answers
What does price mean to the consumer?
What does price mean to the consumer?
- The perceived value at the time of transaction
- The time lost while waiting for the good or service
- The revenue generated
- The cost of something they want (correct)
What is included in the concept of price?
What is included in the concept of price?
- The revenue generated
- The cost of something they want
- The time lost while waiting for the good or service (correct)
- The perceived value at the time of transaction
What do potential buyers carefully evaluate when considering the price of a product?
What do potential buyers carefully evaluate when considering the price of a product?
- Price of a product against the value of existing products (correct)
- Market share pressure
- Increased availability of bargain-priced private and generic brands
- Using price cuts to gain share
Poll: Pricing products is one of the easiest tasks marketing managers undertake.
Poll: Pricing products is one of the easiest tasks marketing managers undertake.
Leo's price matching tactic at Walmart is an example of which pricing tactic?
Leo's price matching tactic at Walmart is an example of which pricing tactic?
Liza's experience at the store with the sale on laptops is an example of
Liza's experience at the store with the sale on laptops is an example of
Price bundling involves
Price bundling involves
Which pricing tactic involves promoting a saving that is not available or a low price on a limited number?
Which pricing tactic involves promoting a saving that is not available or a low price on a limited number?
What is the term for charging different prices for different buyers to reduce competition?
What is the term for charging different prices for different buyers to reduce competition?
What is the term for setting a price very low with the intent of driving competition out?
What is the term for setting a price very low with the intent of driving competition out?
What is the term for luring customers in through false or misleading advertising?
What is the term for luring customers in through false or misleading advertising?
What is the term for two or more companies conspiring to set a price, establishing a floor in a bidding situation, or setting the market price that consumers will pay?
What is the term for two or more companies conspiring to set a price, establishing a floor in a bidding situation, or setting the market price that consumers will pay?
What are the three main pricing objectives mentioned in the text?
What are the three main pricing objectives mentioned in the text?
What is the focus of sales-oriented pricing objectives?
What is the focus of sales-oriented pricing objectives?
What does break-even analysis help determine?
What does break-even analysis help determine?
What does price skimming involve?
What does price skimming involve?
What are the key factors involved in estimating demand, costs, and profits?
What are the key factors involved in estimating demand, costs, and profits?
What is the focus of status quo pricing objectives?
What is the focus of status quo pricing objectives?
What does dynamic pricing involve?
What does dynamic pricing involve?
What is the purpose of price tactics such as value-based pricing?
What is the purpose of price tactics such as value-based pricing?
What is the example of a company with a sales-oriented pricing objective mentioned in the text?
What is the example of a company with a sales-oriented pricing objective mentioned in the text?
What does price lining involve?
What does price lining involve?
What does single price strategy entail?
What does single price strategy entail?
What does loss leader strategy involve?
What does loss leader strategy involve?
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Study Notes
Pricing Process Overview
- Pricing objectives can be sales-oriented, status quo, or profit-oriented, with specific goals such as profit maximization, satisfactory profits, or target return on investment.
- Sales-oriented objectives may focus on market share or sales maximization, while status quo objectives involve maintaining existing prices and meeting competition prices with minimal planning.
- Price changes through the product life cycle (PLC) involve high prices in the introduction stage, stable prices in maturity, and potential further price reductions or increases in decline.
- The example of Tentree, a Canadian apparel company, illustrates a sales-oriented pricing objective focused on achieving profits while maintaining a value proposition.
- Estimating demand, costs, and profits involves cost estimation, demand estimation, price sensitivity, elasticity of demand, and break-even analysis.
- Break-even analysis helps determine the price point at which the firm can begin to make a profit on each unit sold.
- Choosing a price strategy involves considering product positioning, costs, demand, and the PLC stage, with options such as price skimming, penetration pricing, or status quo pricing.
- Price tactics include setting a base price and fine-tuning it using tactics such as discounts and allowances, value-based pricing, dynamic pricing, and geographic pricing.
- Other pricing tactics include single price, flexible price, price lining, and loss leader strategies, each with specific applications and consumer behavior considerations.
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