To Know About Pricing

Question 1

The sum of everything the customer gives up for having and using the product

Answer 1

Price

Customer cost

Question 2

Examples of price (customer cost)

Answer 2

Time 
Inconvenience
Travel
Delivery
Installation 
Training 
Opportunity Cost

Question 3

Pricing that focuses on customer perceptions of value

Answer 3

Value based pricing

Question 4

Two pricing approaches

Answer 4

Cost based pricing

Competition based pricing

Question 5

Calculate cost, add markup to get price

Answer 5

Cost-based pricing

Question 6

Look at what competition is doing, copy it to get price

Answer 6

Competition based pricing

Question 7

No demand above this price

Answer 7

Price ceiling

Question 8

No profit below this price

Answer 8

Price floor

Question 9

The cost of the product represents what kind of price

Answer 9

Price floor bc no profit if selling product below the cost of the product

Question 10

Two products that represent market penetration

Answer 10

Dell

Walmart

Question 11

New product innovation is related to what kind of pricing

Answer 11

Market skimming pricing

Question 12

Examples of market skimming pricing

Answer 12

High tech

Luxury items

Question 13

Price related to the value of the good is the

Answer 13

Maximum price (price ceiling) bc customers have no desire to buy product who’s price is higher than they value it at (no demand above it)

Question 14

When customers are price sensitive, what kind of pricing is used

Answer 14

Market penetration

Question 15

When production costs decrease with production, what kind of pricing is used

Answer 15

Market penetration pricing

Question 16

When low price keeps out competition, what kind of pricing is used

Answer 16

Market penetration pricing

Question 17

When the company can maintain a low price position (still making profit) this is

Answer 17

Market penetration pricing

Question 18

Apple: As they go up in features, it goes up in pricing such as with the different iPhones and MacBooks; this is an example of

Answer 18

Product-line pricing

Question 19

Colorful keyboard covers are sold for laptops and they aren’t necessary for the product (the laptop) to work

Answer 19

Optional-product pricing

Question 20

Game consoles and the games and the controller; prescription lens and frames; razor and the cartridge are all examples of

Answer 20

Captive product pricing (you need to buy the accessories to work the product )

Question 21

Discount for buying more; buy the whole thing and it’s a little cheaper than buying the individual parts is an example of what

Answer 21

Product bundle pricing

Question 22

Bucket of Zoo Doo, scrap metal etc are examples of

Answer 22

By-product pricing (capitalizing o something that would have been a by-product or thrown away

Question 23

Buying ahead with cash and receiving a discount or there being an extra price to pay for paying with card and not cash is an example of

Answer 23

Cash discount pricing

Question 24

When the price is discounted because it’s good for you and good for me that is

Answer 24

Functional discount pricing

Question 25

When you buy more and get a discount this is

Answer 25

Quantity discount pricing

Question 26

When you get a discount for buying things after the season this is

Answer 26

Seasonal discount pricing

Question 27

Four types of segmented pricing

Answer 27

Customer-segment product-form Location Time

Question 28

A McDonald’s value meal being more expensive at LAX airport is an example of

Answer 28

Location segmented pricing

Question 29

When delivery gets more expensive when you’re farther away, this is an example of

Answer 29

Geographical pricing (NOT SEGMENTED)

Question 30

This kind of pricing fluctuates based on supply and demand; for instance products on amazon, airplane tickets etc.

Answer 30

Dynamic pricing

Question 31

Promotion mix pricing strategies (5)

Answer 31

``` Product line pricing Optional product pricing Captive product pricing By-product pricing Product bundle pricing ```

Question 32

Price adjustment strategies (6)

Answer 32

``` Discount pricing Segmented pricing Psychological pricing Promotional pricing Geographical pricing Dynamic pricing ```

Question 33

A product that gets consumers into the store (it’s a frequent and inexpensive purchase)

Answer 33

Loss leader

Question 34

What kind of price adjustment strategies is used for loss leaders

Answer 34

Promotional pricing

Question 35

When you’re at the movies and a cheaper price is offered for kids or seniors this is an example of

Answer 35

Customer-segmented pricing

Question 36

The difference between 2D, 3D and IMAX is an example of

Answer 36

Product form segmented pricing

Question 37

The price of Movie tickets in Manhattan vs movie tickets in state college is an example of

Answer 37

Location segmented pricing

Question 38

Matinee is cheaper is an example of

Answer 38

Time segmented pricing

Question 39

A price ending in what number doesn’t help sales because it’s angular and jarring?

Answer 39

7

Question 40

Relative reference pricing of video game target and Best Buy vs. laptop at Best Buy and Office Depot is an example of

Answer 40

Psychological pricing

Question 41

Price ending in 9 is thought of as a

Answer 41

Bargain

Question 42

A price ending in 8 is thought of as a

Answer 42

Bigger bargain and soothing

Question 43

A price ending in 00 is thought of as

Answer 43

Higher quality

Question 44

Three things about value

Answer 44

Must define what is being sold Financial value Emotional value

Question 45

Cost saving and earnings opportunities are examples of

Answer 45

Financial value

Question 46

Status, safety and a sense of belonging are example of

Answer 46

Emotional value (maslows hierarchy) McDonald sign commercial

Question 47

Public policy protects competitors from what two things

Answer 47

Price fixing | Predatory pricing

Question 48

Talking with competitors to set prices is

Answer 48

Price fixing

Question 49

Selling below cost with the intention of punishing a competitor or putting them out of business is

Answer 49

Predatory pricing

Question 50

Public policy protects consumers from what three things

Answer 50

Price discrimination Price maintenance Deceptive pricing

Question 51

Ensure same price to customers at given level of trade

Answer 51

Price discrimination

Question 52

Requiring dealers to charge s specified retail price

Answer 52

Price maintenance

Question 53

Seller stated price that may mislead customers

Answer 53

Deceptive pricing