midterm exam

Question 1

The amount of money that you charge for your products.

Answer 1

Price

Question 2

The process and methodology used to determine prices for products and services.

Answer 2

Pricing Strategy

Question 3

Portrays value

Answer 3

Winning pricing strategy

Question 4

Convinces customers to buy

Answer 4

Winning pricing strategy

Question 5

Gives your customers confidence in your product

Answer 5

Winning pricing strategy

Question 6

Doesn’t accurately portray the value in your product

Answer 6

Weak pricing strategy

Question 7

Makes customers feel uncertain about buying

Answer 7

Weak pricing strategy

Question 8

Targets the wrong customers

Answer 8

Weak pricing strategy

Question 9

Setting new product prices high and subsequently lowering the price as competitors enter the market

Answer 9

Skimming pricing

Question 10

Pricing products based on the price of competitive products, rather than cost or target profit; usually cheaper than competitors

Answer 10

Competitive pricing

Question 11

Pricing that varies based on marketing and customer demand

Answer 11

Dynamic pricing

Question 12

Pricing a product based on how much the customer believes it’s worth

Answer 12

Value-based pricing

Question 13

Entering a market at a low price and increasing prices over time

Answer 13

Penetration pricing

Question 14

Pricing a product low because of low costs of production, marketing, advertising, and relying on high sales volume to generate profit

Answer 14

Economy pricing

Question 15

Pricing a product deliberately high to encourage favorable perceptions of the brand based on the price

Answer 15

Premium pricing

Question 16

Adding a fixed percentage on top of the cost of producing a product, regardless of consumer demand or competitors’ pricing

Answer 16

Cost plus pricing

Question 17

Offering a product for free alongside paid versions with more features

Answer 17

Freemium pricing

Question 18

Pricing each finite service or project on a case-by-case basis according to the value of the outcome instead of on the time spent to complete it

Answer 18

Project based pricing

Question 19

This strategy uses production cost as its basis for pricing and, to this base cost, a profit level must be added in order to come up with the product price.

Answer 19

Cost-based pricing

Question 20

Also known as customer-based pricing

Answer 20

Value-based pricing

Question 21

A pricing concept which is defined as the setting of a product’s price based on the benefits it provides to consumers.

Answer 21

Value-based pricing

Question 22

It consists of setting the price of a product based on what the competition is charging.

Answer 22

Competition-based

Question 23

It defines your pricing setup for products and services, including your core price points plus discounts, offers, and strategy.

Answer 23

Pricing Structure

Question 24

A pricing strategy in which a company or a retailer offers a single, uniform price for a product or service to all customers, regardless of the quantity purchased or the buyer’s demographics, such as income or location.

Answer 24

Single price strategy

Question 25

A price difference between the cost and selling price of a product or service.

Answer 25

Markup Pricing

Question 26

Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs

Answer 26

Segmented pricing

Question 27

Different customers pay different prices for the same product or service

Answer 27

Customer-segment pricing

Question 28

Different versions of the product are priced differently but not according to differences in their costs

Answer 28

Product-form pricing

Question 29

A company charges different prices for different locations, even though the cost of offering at each location is the same.

Answer 29

Location-based pricing

Question 30

A firm varies its price by the season, the month, the day, and even the hour.

Answer 30

Time pricing

Question 31

The sum of the values that consumers exchange for the benefits of having or using the product or service.

Answer 31

Price

Question 32

No demand above this price

Answer 32

Price ceiling

Question 33

No profits below this price

Answer 33

Price floor

Question 34

Offering just the right combination of quality and good service at a fair price.

Answer 34

Good-value pricing

Question 35

Attaching value-added features and services to differentiate a company's offers and to support charging higher prices.

Answer 35

Value-added pricing

Question 36

Pricing that starts with an ideal selling price and then target costs that will ensure that the price is met.

Answer 36

Target costing

Question 37

This market consists of many buyers and sellers trading in a uniform commodity.

Answer 37

Pure competition

Question 38

This market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

Answer 38

Monopolistic competition

Question 39

This market consists of a few sellers who are highly sensitive to each other's pricing and marketing strategies.

Answer 39

Oligopolistic competition

Question 40

This market consists of one seller.

Answer 40

Pure monopoly