Podcast
Questions and Answers
What is Loss Leader Pricing?
What is Loss Leader Pricing?
- Pricing products based on their brand reputation.
- Creating a pricing strategy that eliminates competition.
- Setting very low prices for some products to attract customers. (correct)
- Setting prices above market rates to maximize profits.
Every Day Low Pricing leads to more predictable consumer demand than Hi-Lo Pricing.
Every Day Low Pricing leads to more predictable consumer demand than Hi-Lo Pricing.
True (A)
What is the primary intention behind Price Bundling?
What is the primary intention behind Price Bundling?
To get customers to buy more and increase sales of higher margin items.
Hi-Lo pricing often results in a large ______ segment that enjoys discounts.
Hi-Lo pricing often results in a large ______ segment that enjoys discounts.
Match the following pricing strategies with their characteristics:
Match the following pricing strategies with their characteristics:
Which of the following is NOT a benefit of Everyday Low Pricing?
Which of the following is NOT a benefit of Everyday Low Pricing?
The primary goal of Hi-Lo Pricing is to create predictable consumer demand.
The primary goal of Hi-Lo Pricing is to create predictable consumer demand.
What are two main components of Price Bundling?
What are two main components of Price Bundling?
Which of the following is NOT a factor that reduces price sensitivity?
Which of the following is NOT a factor that reduces price sensitivity?
Which of the following is a drawback of markup pricing?
Which of the following is a drawback of markup pricing?
Small changes in price have little effect on sales and profit.
Small changes in price have little effect on sales and profit.
What is the primary objective of price elasticity?
What is the primary objective of price elasticity?
Markups are typically lower for specialty items.
Markups are typically lower for specialty items.
A product is assumed to have more quality, prestige, or __________, which reduces price sensitivity.
A product is assumed to have more quality, prestige, or __________, which reduces price sensitivity.
What is the formula for calculating Break-Even Quantity (BEQ)?
What is the formula for calculating Break-Even Quantity (BEQ)?
Starting at the highest possible price in the introduction stage of a new product and lowering the price later is called ____________ Pricing.
Starting at the highest possible price in the introduction stage of a new product and lowering the price later is called ____________ Pricing.
Match the psychological pricing strategies with their descriptions:
Match the psychological pricing strategies with their descriptions:
Which pricing objective focuses on achieving the lowest possible price point to stay in business?
Which pricing objective focuses on achieving the lowest possible price point to stay in business?
Match the following pricing strategies with their descriptions:
Match the following pricing strategies with their descriptions:
What does Break-Even Price (BEP) equate to?
What does Break-Even Price (BEP) equate to?
What defines reference prices in consumer pricing psychology?
What defines reference prices in consumer pricing psychology?
Variable costs include fixed costs like rent and salaries.
Variable costs include fixed costs like rent and salaries.
Bait-and-Switch advertising is legal as long as the bait item is sold out.
Bait-and-Switch advertising is legal as long as the bait item is sold out.
List two advantages of price skimming over penetration pricing.
List two advantages of price skimming over penetration pricing.
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