Podcast
Questions and Answers
Which theory states the need to identify relevant competing alternatives and define the value differential for pricing?
Which theory states the need to identify relevant competing alternatives and define the value differential for pricing?
- Value Elasticity Theory
- Value Equivalence Theory
- Price Elasticity Theory
- Price Boundary Theory (correct)
What does the price to benefits map plot the position of products in terms of?
What does the price to benefits map plot the position of products in terms of?
- Competitor prices
- Perceived products and perceived benefits (correct)
- Perceived value and actual benefits
- Actual costs
Which zone indicates that the product is priced higher than what is justified based on the measure of benefits alone?
Which zone indicates that the product is priced higher than what is justified based on the measure of benefits alone?
- Value Disadvantaged Zone (correct)
- Elasticity Zone
- Value Advantaged Zone
- Zone of Indifference
What does a small variation in price or benefits around the value equivalence line have on sales volume?
What does a small variation in price or benefits around the value equivalence line have on sales volume?
What is the key ingredient for determining the width of the zone of indifference?
What is the key ingredient for determining the width of the zone of indifference?
Where do products priced significantly lower or higher than the corresponding levels of benefits fall?
Where do products priced significantly lower or higher than the corresponding levels of benefits fall?
What term is used to describe the impact of large changes in price on the elasticity of demand?
What term is used to describe the impact of large changes in price on the elasticity of demand?
In pricing strategy, what does 'Value Advantaged zone' refer to?
In pricing strategy, what does 'Value Advantaged zone' refer to?
Which factor can lead to a potential price war in an industry, according to the text?
Which factor can lead to a potential price war in an industry, according to the text?
What does 'Benefit Bracketed - Benefit Floor' refer to in pricing strategy?
What does 'Benefit Bracketed - Benefit Floor' refer to in pricing strategy?
Which type of product category can lead to sequential improvements in product quality over time?
Which type of product category can lead to sequential improvements in product quality over time?
What is the consequence of pricing products aggressively in the 'Value Advantaged zone'?
What is the consequence of pricing products aggressively in the 'Value Advantaged zone'?
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