chapter 8th - march 21st

Question 1

what are these referring to:

-A strategic opportuinity to create value
- Pricing signals quality or lack thereof
- Should not be an afterthought to the rest of the marketing mix
- Think Target in Canada

Answer 1

the importance of pricing

Question 2

• Usually ranked as one of the most important factors in purchase decisions
• The only element in the marketing mix that generate revenue
• The most challenging of the 4 ps to manage because it is the least understood

Answer 2

what is price

Question 3

what type of orientation is this

• Target return on investment ROI
• Maximize profits

Answer 3

Profit orientation

Question 4

what type of orientation is this

• Maximizing sales
• Maximizing market share

Answer 4

Sales Orientation

Question 5

examples of _______demand
- Milk
- Gasoline
- Carbon tax

Answer 5

Inelastic - necessity

Question 6

examples of _______demand
- Louis vitton
- Luxury

Answer 6

Elastics - wants

Question 7

The economy, government laws and regulations

Answer 7

competitors

Question 8

• Elastic price elasticity of demand
• Enelastic price elasticity of demand

Answer 8

prices elasticity

Question 9

• Penetration pricing strategy
• Price skimming strategy
• Cost plus pricing
• Odd even pricing
• Prestige pricing

Answer 9

5 pricing strategies

Question 10

name 5 pricing strategies

Answer 10

• Penetration pricing strategy
• Price skimming strategy
• Cost plus pricing
• Odd even pricing
• Prestige pricing

Question 11

determine middle ground for pricing and establish “expensive/cheap”

Answer 11

Price lining

Question 12

start with a price “$20 gift for secret santa”

Answer 12

Demand backward pricing

Question 13

aggressively priced item, but also get something else (sephora sales)

Answer 13

Loss leader pricing

Question 14

walmart, not as low as lowest in marketplace,

Answer 14

Everyday low prices

Question 15

think cogeco, rodgers, hoping to get you to pay more

Answer 15

Price bundling

Question 16

raptors game food or drinks, cineplex, monopoly inside gates

Answer 16

Captive pricing

Question 17

entire line of pricing

Answer 17

Product mix pricing -

Question 18

gilette or coffee, price for razor and handle, price for machine and pods

Answer 18

Two part pricing

Question 19

subway sub for $4.99 rather than $6.99

Answer 19

Promotional pricing

Question 20

5 payments instead of paying upfront

Answer 20

Payment pricing

Question 21

price changes min my min on travel sites

Answer 21

Dynamic pricing

Question 22

netflix and spotify,

Answer 22

Subscription based pricing

Question 23

student fare or discount, child tickets, senior fare

Answer 23

Price discrimination

Question 24

is the amount of money a buyer is willing to pay for a security.

Answer 24

sales bid pricing

Question 25

the maximum amount of money an advertiser is willing to pay for each click on an advertisement

Answer 25

Bids

Question 26

when a business sets the price of its product or service based on the market price

Answer 26

Going rate pricing

Question 27

If a company sells a product that costs $5, buying 100 of those units would cost $500. To entice buyers to purchase its product, a company may offer a ________ _______, selling 100 units for $450, which would make the per unit cost $4.50 instead of $5; a 10% discount.

Answer 27

quantity discount

Question 28

buying a wonderland pass now rather than in june, or buying winter clothing in spring

Answer 28

seasonal discount

Question 29

you pay delivery

Answer 29

free on board orgin

Question 30

you pay shipping all the way from destination, wayfare

Answer 30

FOB destination

Question 31

one shipping fee for anywhere in the country

Answer 31

Uniform Delivered Pricing

Question 32

if your brand will be promoted by them, or seen in store

Answer 32

Trade Allowances

Question 33

2 organizations lean on each other and often benefit

Answer 33

Reciprocal Agreements

Question 34

if you come back to starbucks after 2pm we will give you a discount, after already buying a drink in the morning

Answer 34

bounce back

Question 35

a strategy used by businesses to attract customers to a new product or service by offering a lower price initially

Answer 35

penetration pricing strategy

Question 36

a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time

Answer 36

price skimming strategy

Question 37

a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a “markup”) to the product’s unit cost

Answer 37

cost plus pricing

Question 38

psychological pricing strategies that help businesses shape consumers’ value perceptions — one where businesses end prices with odd numbers (i.e. $99.99) and another that does the same with whole number tenths (i.e. $100.00).

Answer 38

odd even pricing

Question 39

a pricing strategy in which prices are set at a high level, recognising that lower prices will inhibit sales rather than encourage them and that buyers will associate a high price for the product with superior quality; also called Image Pricing.

Answer 39

prestige pricing