Which of the following statements would be most likely to be made by a manager with a status quo pricing objective?

stabilize prices meet competition avoid competition. More test answers on https://studyhippo.com/mkg300-exam-6/

Dell’s new line of computers is selling for up to 20 percent lower than similar computers sold by its largest competitors. Since Dell’s goal is to maximize its sales, it is probably using which type of strategy? a. status quo pricing b. price lining c. penetration pricing d. price skimming

C Consumers are price sensitive in this market. More test answers on https://studyhippo.com/marketing-final-17/

A 16-ounce bottle of Prairie Herb vinegar sells for $4.95, and a 16-ounce bottle of Heinz vinegar costs $1.05. Prairie Herb vinegar is new to the market, perceived to be of higher quality, and provides a unique flavour to foods even though it is used in the same way as Heinz vinegar. Prairie Herb vinegar is most likely using which type of policy? a. price skimming b. bundling cost pricing c. penetration pricing d. status quo pricing

A Price skimming is common for products in the introductory stage of their product life cycle. More test answers on https://studyhippo.com/marketing-final-17/

Airlines that offer lower fares on seats shortly before the flight’s departure date to fill empty seats are utilizing what type of pricing tactic? A. Status quo pricing B. Premium pricing C. Cross-pricing D. Complementary pricing E. Dynamic pricing

E (dynamic pricing) More test answers on https://studyhippo.com/mktg-370-exam-3-practice-quizzes/

_____ is a tactic in which a 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

E (premium pricing) More test answers on https://studyhippo.com/mktg-370-exam-3-practice-quizzes/

When the Mosquito Magnet was introduced, it was designed to rid the immediate area of mosquitoes and other annoying insects. The technology for the Mosquito Magnet took years to develop. It is a patented grill-like apparatus that emits carbon dioxide to attract bugs to a fan, which draws them into the device where they die. What type of pricing policy would you have recommended the company use to introduce this product to the market? a. price skimming b. leader pricing c. penetration pricing d. status quo pricing

A The price-skimming strategy will recoup the R&D costs quickly. Also, the product is probably price inelastic. Patents will limit or prohibit direct competition. More test answers on https://studyhippo.com/marketing-final-17/

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 A. premium pricing. B. competitive parity. C. status quo pricing. D. target return pricing. E. target profit pricing.

C (status quo pricing) More test answers on https://studyhippo.com/mktg-370-exam-3-practice-quizzes/

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 More test answers on https://studyhippo.com/bus-360-final/

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Status Quo Pricing Flashcards, test questions and answers

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What is Status Quo Pricing?

Status quo pricing is a pricing strategy in which products and services are priced at the same level as competitors. The goal of this strategy is to maintain market share, attract new customers, and keep existing customers loyal. This type of pricing has become increasingly popular in today’s competitive business environment because it allows companies to remain competitive while also minimizing risks associated with price changes.Status quo pricing involves setting prices at or near the industry average, which helps businesses avoid the risk of being undercut by competitors who may be offering lower prices. It also ensures that the company can remain profitable while still providing a quality product or service. Additionally, this type of pricing can help businesses retain their existing customer base since customers are likely to stick with a familiar brand rather than switch to a different one if it’s significantly cheaper. While status quo pricing can provide stability for businesses, there are some potential drawbacks that should be considered. For instance, companies using this strategy may miss out on opportunities for growth since they won’t be able to capitalize on price increases that could come from offering better value than competitors. Furthermore, maintaining market share through status quo pricing could lead to decreased profits from reduced margins due to intense competition from other companies offering similar products and services at similar prices. In conclusion, status quo pricing can be an effective strategy for maintaining market share and keeping customers loyal while avoiding risks associated with price changes; however, it should only be adopted when certain conditions are met such as an understanding of customer demand and an assessment of current market trends in order to maximize profitability and minimize losses associated with intense competition in the marketplace.