Marketing Ch 14 – Flashcards

As the marketing vice president of her firm, Jana is considering implementing a company-wide pricing policy that all products must achieve a target profit margin of 15% so the firm can achieve its overall growth objectives. What type of company objective is this? a)profit-orientation b)sales-orientation c)competitor-orientation d)customer-orientation e) market-orientation

Jana's firm is entering a new market and she plans to set prices to take sales away from the established market leader even though it will mean profits might suffer. This corresponds to which of the following company objectives? a)profit-orientation b)sales-orientation c)competitor-orientation d)customer-orientation e)market-orientation

_____ means the firm deliberately prices a product above the prices set for competing products to capture those customers who always shop for the best, or for whom price does not matter. a)Target return pricing b)Target profit pricing c)Status quo pricing d)Competitive parity e)Premium pricing

Best Buy will match competitor prices for customers who bring in proof that a particular product is being sold at a lower price by a competitor, thus using: premium pricing. competitive parity. status quo pricing. target return pricing. target profit pricing.

Jack works for a firm in the Northwestern region that is clearly the market leader, and has determined he must implement a region-wide price reduction of all product lines to discourage new firms from entering the lucrative market. Which of the following company objectives is involved? profit-orientation sales-orientation competitor-orientation customer-orientation market-orientation

A _____ orientation explicitly invokes the concept of value such as when a firm uses a no-haggle pricing structure to make the purchase process simpler and easier: profit sales competitor customer market

_____ indicates that the demand for related products can either be positively or negatively related: The income effect The substitution effect Cross-price elasticity Complementary products effect The supply curve

In _____, one firm provides the product or service in a particular industry, which results in less price competition: a monopoly an oligopoly monopolistic competition oligopolistic competition pure competition

In the soft drink industry only a few firms dominate, which is characterized as: a monopoly. an oligopoly. pure competition. competitive parity. monopolistic competition.

Standardized products such as grains and chemical products, where consumers perceive them as substitutable, are characteristic of : monopolies. oligopolies. pure competition. competitive parity. monopolistic competition.

In terms of a pricing strategy, _____ pricing adds value by reducing consumers' search costs; consumers can spend less of their valuable time comparing prices, including sale prices, at different stores: cost-based high/low predatory everyday low competitor-based

A _____ pricing strategy relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases: predatory high/low cost-based everyday low competitor-based

In addition to offering the potential to build sales, market share, and profits, _____ discourages competitors from entering the market because the profit margin is relatively low: price lining price skimming predatory pricing penetration pricing experience curve effects

_____ is used to market products to innovators who are willing to pay the very highest prices to obtain brand-new examples of technology advances, with exciting product enhancements: Price lining Price skimming Penetration pricing Price fixing High/low pricing

_____ is a form of deceptive price advertising where sellers advertise items for a very low price without intending to sell any of them because they plan to pressure sales of higher-priced items: Deceptive reference pricing Loss leader pricing Bait and switch Predatory pricing Price discrimination

what is the most underresearched P in marketing?

what is the only P in the marketing mix that generates revenue and doesnt contribute to cost

What is the definition of price

what do consumers rank as the most important factor in their purchase decision

what are the 5 C's of pricing?

What is profit orientation

what is target profit pricing

what pricing strategy primarily relies on economic theory

what may firms do to gain overall market share

when the firm deliberately prices a product above the prices set for competing products to capture consumers who always shop for the best or for whom price doesn't matter this is called

when firms strategize according to the premise that they should measure themselves primarily against their competition what orientation do they take?

what is competitive partiy

a competitor oriented strategy in which a firm changes prices only to meet those of ocmpetition is called what

when a firm sets its pricing strategy based on how it can add value to its products or services what kind of orientation is this called?

what does a demand curve show?

what do you call products that consumers purchase for status rather than functionality?

what does price elasticity of demand measure

what is the formula for price elasticity of demand?

when price elasticity is less than -1 then a product is..

when a products price elasticity is greater than -1 it is..

customers are more sensitive to price _____ than price _______

what is the income effect

what is the substitution affect

the greater the availability of sub products, the _____ the price elasticity for demand for any given product will be

what is the percentage change in quantity of product A demanded compared with the percentage change in price in product B

What are complementary products?

are changes in demand for sub products negatively or positively related?

what are variable costs

what are fixed costs

what technique enables managers to examine the relationships among cost, price, revenue and profir over different levels of production and sales

what is the break-even point

Total variable cost=

total revenue=

total cost =

what is the contribution unit?

break even point (units)=

profit =

when one firm provides the product or service in a particular industry resulting in less price competition this is called a what?

when only a few firms dominate a market this is called

what is a price war

what is it called when a firm sets a very low price with the intent to drive its competition out of business?

is predatory pricing legal?

what is monopolistic competition

when different companies sell commodity products that consumers view as substitutable what kind of competition is this

what is the gray market

in what price strategy do compaines stress the continuity of their retail price at a level between regular nonsale price and deep discount sale prices of their competition

what pricing strategy relies on the promotion of sales, during which prices are temporarily reduced to encourage purchases

what is the reference price

what is the market penetration pricing strategy

the low market penetration price is an incentive to what?

firms using market penetration strategy expect unit cost to drop as the accumulate volume sold increases, what is this effect called?

the strategy of selling a new product at a high price that innovators and early adopters are willing to pay to obtain it then is lowered after the market is saturated is called what?

cost of a product is at its lowest when ...

what is the learning affect

what is loss leader pricing

what is the bait and switch practice

when firms sell the same product to different resellers at different prices, this is considered what?

what is price fixing

horizontal price fixing occurs when..

what is vertical price fixing

strategies than can be used as part of the profit orientation strategy include:

when a firm initially sets prices similar to major competitors prices, this is an example of _______ pricing

prestige products and services do not follow the _______ curve

demand curves usually have a ______ slope

when firms compete by lowering price at retail, they are engaged in a ____

in a pure competition market, to differentiate markets what are firms advised to do?

only some forms of price discrimination are considered illegal under what two legislations?

what legislation governs price fixing in the US