Podcast
Questions and Answers
What is the main focus of Chapter 1 in the book on setting the price?
What is the main focus of Chapter 1 in the book on setting the price?
- Boundaries of a Good Price (correct)
- Consumer Perception–Driven Pricing
- Profit’s Sensitivity to Price
- Psychological Influences on Price Sensitivity
How can firms influence their pricing power, as discussed in the text?
How can firms influence their pricing power, as discussed in the text?
- By adjusting marginal costs (correct)
- By focusing on competitor pricing
- By ignoring consumer perceptions
- By investing in psychological marketing tactics
In what context should executives consider pricing a new product?
In what context should executives consider pricing a new product?
- Ignoring consumer perceptions of value
- Not taking competitors' pricing into account
- Pricing it high to grab greater profits per sale
- Pricing it low to grab market share (correct)
Which factor plays a significant role in setting a good price according to the text?
Which factor plays a significant role in setting a good price according to the text?
What is the main aspect emphasized when deciding how to price a new product?
What is the main aspect emphasized when deciding how to price a new product?
What is the main reason for the firm's existence according to the text?
What is the main reason for the firm's existence according to the text?
In a free market, customers choose whether or not to purchase a product based on what?
In a free market, customers choose whether or not to purchase a product based on what?
What role do pricing decisions play in a firm's profitability according to the text?
What role do pricing decisions play in a firm's profitability according to the text?
Why is it illegal, if not unethical, to coerce customer purchases in free markets?
Why is it illegal, if not unethical, to coerce customer purchases in free markets?
What strategic areas do pricing questions cross over into, as mentioned in the text?
What strategic areas do pricing questions cross over into, as mentioned in the text?
What should a firm aim for when pricing higher-priced products compared to lower-priced products?
What should a firm aim for when pricing higher-priced products compared to lower-priced products?
When are increases in marginal costs for product improvements sometimes matched with smaller increases in marginal price?
When are increases in marginal costs for product improvements sometimes matched with smaller increases in marginal price?
Which strategy involves the addition and subtraction of tangible features to create segmentation hedges?
Which strategy involves the addition and subtraction of tangible features to create segmentation hedges?
Why is it important for a firm to define which features and benefits customers will pay more for?
Why is it important for a firm to define which features and benefits customers will pay more for?
What should be included in the lower-priced product, according to the text?
What should be included in the lower-priced product, according to the text?
In what scenario should a firm compensate for diminished contribution margin by increasing unit volume sales?
In what scenario should a firm compensate for diminished contribution margin by increasing unit volume sales?
Which pricing strategy involves creating differentiation by offering features valued by only a segment of the market?
Which pricing strategy involves creating differentiation by offering features valued by only a segment of the market?
What role do versions, bundling, and add-on pricing play in pricing strategy?
What role do versions, bundling, and add-on pricing play in pricing strategy?
What is one key challenge for constructing a product-engineered segmentation hedge, as mentioned in the text?
What is one key challenge for constructing a product-engineered segmentation hedge, as mentioned in the text?
What should be done if competitive forces drive a firm to increase features beyond potential price increases?
What should be done if competitive forces drive a firm to increase features beyond potential price increases?
