Manage Pricing Decisions

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Marketing in Today's Business Milieu
Marketing Foundations: Global, Ethical, Sustainable
Elements of Marketing Strategy, Planning, and Competition
Market Research Essentials
CRM, Big Data, and Marketing Analytics
Understand Consumer and Business Markets
Segmentation, Target Marketing, and Positioning
Product Strategy and New Product Development
Build the Brand
Service as the Core Offering
Manage Pricing Decisions
Manage Marketing Channels, Logistics, and Supply Chain
Promotion Essentials: Digital and Social Media Marketing
Promotion Essentials: Legacy Approaches

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Question 1

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Regardless of whether the setting is B2C or B2B, most costs are associated with the purchase price.

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Question 2

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For the marketing manager, pricing is merely an economic break-even point or a cost-plus accounting calculation.

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Question 3

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Since a product's price tends to be invisible, customers rarely have trouble moving past price to consider other critical benefits the product affords.

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Question 4

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Price objectives are the desired or expected result associated with a pricing strategy and must be consistent with other marketing-related objectives, such as positioning or branding.

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Question 5

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A competitor's price is one of the most visible elements of its marketing strategy; analyzing historical and current pricing patterns may allow firms to determine the competitor's pricing objective.

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Question 6

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Effectively communicating a product's differential advantages is at the heart of positioning strategy, and exposure to these elements spurs the customer to develop perceptions of value and a subsequent understanding of the value proposition.

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Question 7

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Firms that have an objective of utilizing pricing to communicate positioning use a stability pricing strategy.

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Question 8

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Firms and brands that continually attempt to operate in the high-price/low-benefits environment do not survive over the long run as customer trust is damaged.

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Question 9

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Firms frequently rely on combinations of pricing tactics in the marketplace rather than putting all their eggs in one basket.

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Question 10

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In product line pricing, the escalation of product prices up the product line does not depend on prices competitors are charging for similar products.

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Question 11

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Captive pricing entails gaining a commitment from a customer to a basic product or system that requires continual purchase of peripherals to operate.

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Question 12

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With prestige pricing, some of the traditional price/demand curves cannot properly predict sales or market response because it violates the common assumption that increasing price decreases volume.

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Question 13

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Odd pricing can backfire if misapplied, especially with respect to service industries.

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Question 14

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A variable pricing strategy makes planning and forecasting much easier than a one-price strategy.

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Question 15

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Due to its use of an everyday low pricing tactic, Walmart has historically needed to make heavy investment in promotional activities.

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Question 16

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To set an exact price for goods or service, marketing managers should consider more than one method of calculation to arrive at the optimal price.

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Question 17

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Average-cost pricing is a method for determining the price of an offering by adding a standardized markup on top of the costs for the offering.

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Question 18

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A promotional allowance offers retailers the opportunity to receive some compensation from product marketers for the costs of successful product promotions.

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Question 19

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Zone, uniform delivered, and free on board are examples of geographically-driven pricing options that can be implemented within a distribution channel.

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Question 20

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Among the marketing mix variables, price is the easiest and quickest to alter, so sometimes firms overuse price changes to stimulate additional sales or gain market share.

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