Setting Prices Strategies in Marketing

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What is the main difference between cost-plus pricing and markup pricing?

Cost-plus pricing is a strategy based on competition, while markup pricing is a differential pricing strategy.

Cost-plus pricing adjusts the price based on demand, while markup pricing sets the price according to the seller’s costs.

Cost-plus pricing adds a predetermined percentage to the cost, while markup pricing adds a specified amount to the cost. (correct)

Cost-plus pricing is commonly used by retailers, while markup pricing is used by sellers to set prices based on demand.

Which pricing strategy involves charging different prices to different buyers for the same product?

Markup pricing

Differential pricing (correct)

Competition-based pricing

Demand-based pricing

What is the purpose of differential pricing?

To charge the same price to all buyers

To establish prices based on demand

To charge different prices for the same product (correct)

To set prices below competitors' prices

In which pricing strategy does a firm reduce prices temporarily on a non-systematic basis?

Random Discounting Signup and view all the answers

What is the key characteristic of psychological pricing?

It aims to influence customer perception of price Signup and view all the answers

Which type of pricing involves setting predetermined prices that reflect explicit price breaks?

Price Lining Signup and view all the answers

What is one of the major pricing objectives mentioned in the text?

Survival Signup and view all the answers

In the process of setting prices, what is Stage 3 about?

Evaluation of competitor's prices Signup and view all the answers

Which pricing objective aims to maintain or increase market share?

Market share Signup and view all the answers

For cost-based pricing, what is added to the cost of the product?

A flat peso amount or percentage Signup and view all the answers

Which pricing objective focuses on recovering cash as quickly as possible?

Cash Flow Signup and view all the answers

What does a high price signal to customers according to the text?

High quality product Signup and view all the answers

Setting Prices Strategies in Marketing

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Questions and Answers

What is the main difference between cost-plus pricing and markup pricing?

Which pricing strategy involves charging different prices to different buyers for the same product?

What is the purpose of differential pricing?

In which pricing strategy does a firm reduce prices temporarily on a non-systematic basis?

What is the key characteristic of psychological pricing?

Which type of pricing involves setting predetermined prices that reflect explicit price breaks?

What is one of the major pricing objectives mentioned in the text?

In the process of setting prices, what is Stage 3 about?

Which pricing objective aims to maintain or increase market share?

For cost-based pricing, what is added to the cost of the product?

Which pricing objective focuses on recovering cash as quickly as possible?

What does a high price signal to customers according to the text?

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