Chapter 11

Question 1

what are the five c’s of pricing

Answer 1

1. competition
2. costs
3. company objectives
4. customers
5. channel members

Question 2

table for competition**

Question 3

def of skimming

Answer 3

high to lower

Question 4

def of penetration

Answer 4

lower to high

Question 5

pricing strategies (3)

Answer 5

1. cost-based
2. competitor-based
3. value-based

Question 6

Identify pricing tactics targeted to channel members and consumers

Answer 6

consumers: price lining, price bundling, leader pricing markdowns, quantity discounts, and coupons
B2B: seasonal discounts, cash discounts, allowances, quantity discounts, uniform delivered, geographic pricing

Question 7

Summarize the legal and ethical issues involved in pricing (3)

Answer 7

1. Deceptive reference prices:
2. Loss leader pricing:
3. Bait and switch advertising