Ch.14 10 questions from kotler assignment
- 1. 10 Questions for Chapter 14 (Developing Pricing Strategies and Programs by Kotler)Prepared By: Antonieta ManalangDate: September 2, 2010
- 2. The following are pricing mistakes exceptDetermining costs and taking traditional industry margins
- 3. Revising price to capitalize on market changes
- 4. Setting price independently of the rest of the marketing mix
- 5. Standardizing price by product item, market segment, distribution channels, and purchase occasion
- 6. Setting various price objectives______ is a type of consumer pricing psychology wherein consumers tend to process prices in a “left-to-right” manner rather than by rounding, e.g. stereo amplifier priced at 299 instead $300 as a price in the $200 range rather than $300 range Price Cue
- 7. Price ending
- 10. Price-quality inferenceWhich of the following statement is FALSE in considering a pricing objective?Survival: Prices are lowered to ensure inventory turnover but price must cover variable costs & fixed costs.
- 11. Maximum current profit: price is set to maximize current profit, cash flow, or ROI
- 12. Maximum Market Skimming: Prices start low and increased overtime
- 13. Maximum sales growth : low price is set assuming that marketing is price sensitive
- 14. Marketing penetration pricing: Goal is high sales volumeA behavior wherein a consumer prefers to buy an Armani shirt at $275 over a GAP shirt which costs $14.90 is an example of:Reference Price
- 16. Price Cues
- 17. Price endingsWhich of the following statement is TRUE on factors to price sensitivity?Customers are more price sensitive to low-cost items or items they buy infrequently
- 18. Buyers are less price sensitive when there are few are no substitutes
- 19. Customers readily notice the price increases
- 20. Customers easily changed their buying habits
- 21. Customers think that higher prices for the items they buy infrequently are not justifiedA company’s way of increasing the price by maintaining its price but removes or prices separately one or more elements that were part of the former offer, such as free delivery or installationDiscount Reduction
- 22. Unbundling
- 25. Anticipatory pricingThe following are price-adaptation strategies exceptGeographical pricing
- 26. Price discounts and allowances
- 29. Differentiated PricingCompanies do the following approaches to avoid price increase shock among consumers exceptSubstituting less-expensive materials or ingredientsIncreasing the number of sizes and models offeredShrinking the amount of productCreating new economy brandsReducing or removing product features
- 30. A pricing method wherein customers are charged of low price for a high-quality offeringPerceived-value pricing
- 32. Markup Pricing
- 34. Value PricingWhich of the following statement is FALSE on the impact of other marketing activities?Consumers are willing to pay higher prices for known products than for unknown products
- 35. Brands with average relative quality but high relative advertising budgets cant charge higher prices
- 36. Price is a major factor when customer buys a product
- 37. Customer support is important for buyers
- 38. Brands with low quality and low advertising charged the lowest prices
Editor's Notes
- #3: Answer: revising price to capitalize on market changes
- #4: Answer: Price cues
- #5: Answer: Maximum market skimming
- #6: Answer: Price-quality Inferences
- #7: Answer: Buyers are less price sensitive when there are few are no substitutes
- #8: Answer: Unbundling
- #9: Answer: Delayed quotation pricing
- #10: Answer: Increasing the number of sizes and models offered
- #11: Answer: Value Pricing
- #12: Answer: Price is a major factor when customer buys a product