A company owns several lakeside restaurants and adjacent marinas. https://quizlet.com/252005737/marketing-exam-chapter-19-flash-cards more. Price a consumer or marketing intermediary actually pays for a product after subtracting any discounts, allowances, or rebates from the list price. system used in some industries during the early 20th century in which the buyer paid the factory price plus freight charges from the basing-point city nearest the buyer. When government or organizational procurement departments develop descriptions of proposed purchases, these descriptions are called: An international marketer may have trouble sustaining standard worldwide prices if _____ increase and/or _______ decrease. 5. American drug industry leaders like Merck and Astra-Zeneca are in the forefront of scientific discoveries that can lead to improved treatments for devastating diseases like cancer. Establishing and adjusting prices of multiple products within a product line: 8/18/2019 Exam III Quizes Flashcards | Quizlet Exam III Danielle is opening an exclusive beauty salon in a luxury shopping mall. This strategy works out only at certain conditions, they are: • Product’s quality and image should satisfy the higher prices • All the buyers of the targeted segment should be willing for that price • Market entry for the competitors should be tough. Price reduction granted for a large-volume purchase. By doing so, a company can recoup its investment in the product. Promotional pricing should be a(n) _______ part of a firm's marketing strategy. •Odd pricing is the strategy of setting prices using odd numbers that are slightly below whole-dollar amounts (e.g., $4.99 rather than $5) •Sellers who use odd pricing believe that odd numbers increase sales because consumers register the dollar amount, not the cents •Even prices are often used to give a product an exclusive or upscale image Specified deduction from list price, including a trade-in or promotional allowance. View Marketing 304_ Chapter 10 Flashcards _ Quizlet.pdf from BSMM 8140 at University of Windsor. Determine your pricing policy. Chapter 26 Pricing Strategies Flashcards _ Quizlet - |Quizlet Chapter 26 Pricing Strategies Like this study set 15 terms cmiller2140 Create a free. a form of cash discount used by sellers to improve their liquidity positions and reduce their bad debt losses is known as a(n): a market-differentiated pricing strategy allows ______ flexibility than _______ pricing strategy. The dealer is offering a: A guitar manufacturer sells two types of instruments: a mass-produced guitar which is affordable for beginners and a handmade instrument which is priced much higher for accomplished musicians. In which of the following ways does penetration pricing differ from market-minus pricing, if any? Price discount determined by amounts of purchases over stated time periods. Check all of the following that are the steps in determining the pricing strategy. Transfer pricing is closely monitored by the government to ensure that companies do not: Standard worldwide pricing is most likely to succeed if an exporter's foreign marketing costs are: while bots may force marketers of some types of products to keep prices low, these search programs are less important to sellers of items like: Consumers define certain limits within which their quality perceptions vary directly with price. Pricing strategy of continuously offering low prices rather than relying on short-term price cuts such as cents-off coupons, rebates, and special sales. Inviting potential suppliers to quote prices on proposed purchases or contracts. Around Thanksgiving, many supermarkets cut their prices on turkey to match the discounts offered by competitors and maintain market share. For what type(s) of brand does this perception hold true? This company uses a ______ pricing strategy. D. Loss Leader Pricing. This is an example of ______ pricing. When only one supplier offers a desired product, purchase terms are often set through: Cash, trade, or quantity discounts may be applied to a list price by marketers to arrive at a customer's _____ price. Software program that allows online shoppers to compare prices of a particular product offered by several online retailers. A motorcycle dealer promotes a $500 credit toward the purchase of its newest model. All of the following are true about transfer pricing except: It is limited to multinational organizations. A skimming pricing strategy allows the manufacturer of a new product to avoid problems with excess ______ during the introductory stage of the product's lifecycle. Price flexibility is more likely to be applied to marketing programs based on: Firms using competitive pricing strategy concentrate their marketing efforts on which elements of the marketing mix? C) setting a high initial price. B) how transportation costs will be handled. B. a market penetration strategy when there is an opportunity for price skimming. 10/23/2020 Marketing 304: Chapter 10 Flashcards | Quizlet Marketing 304: Chapter 10 Leave the first Today's marketers are increasingly choosing to standardize their pricing across channels. To illustrate, Marriott Marquis hotels and Vacation Clubs offer luxuryamenities at a premium price. Price quotation system that allows the buyer to deduct shipping expenses from the cost of purchases. Describe the three pricing strategies and give examples of each. pricing objectives: Definition. Established price normally quoted to potential buyers. All of the following are true about promotional pricing except: It is regulated by the Robinson-Patman Act. Offering two or more complementary products and selling them for a single price. product-line pricing: Definition. NEW! An online pet supply company mails buyers a $5 refund after they pay for and receive any order of dog or cat food worth at least $50. General guideline that reflects marketing objectives and influences specific pricing decisions. Which of the following is (are) true about a trade discount? a strategy with high initial prices to "skim" revenue layers from the market-Product quality and image must support the price-Buyers must want the product at the price-Costs of producing the product in small volume should not cancel the advantage of higher prices … All of the following are true about the competitive bidding process except: Cumulative quantity discounts are considered _______ discounts because they tend to bind customers to a single supply source. In order to discourage competition from entering the market, a penetration pricing strategy is often employed by organizations.-True When organizations need to meet an economy of scale point they often use a skimming pricing strategy.-False The market condition where many sellers offer substitutable products is described as a: This is an example of _______ pricing strategy. The owner is trying to determine what rate should be charged by the marina security team to provide surveillance at the restaurants. Intentionally setting a relatively high price compared with the prices of competing products; also known as skimming pricing. C. ... Price skimming. An opening price below that of the competition, usually on a high-quality, private-label item. Pricing policy based on the belief that certain prices or price ranges make a good or service more appealing than others to buyers. Dell was able to do this by selling direct to customers instead of through traditional, higher-cost market intermediaries. B. Price skimming is the strategy of charging a relatively high price during the launch of a new product and then lowering the price over time as demand declines. Skimming pricing a pricing policy that sets a high price for a new product and is used when demand is greater than supply. Strategy that sets the same price for a specific product regardless of where it is sold. Definition A skimming pricing strategy is often used when a company introduces a new product into a market with little or no competition. Marriott and Renaissance hotels offer medium- to high-pricedaccommodations. Fees paid to retailers who agree not to advertise products below set prices. The owners hope to attract customers in a highly competitive lodging market by using ______ pricing. an eco-friendly product is available for a small premium. a. Marketers should consider price cutting only when one or more conditions exist: Consumers determine value by judging the worth and desriability of an offering relative to substitutes that satisfy the same need. A Pennsylvania manufacturer of bicycles quotes the same price to bicycle stores in Oregon, Texas, and New Jersey. Sometimes pricing strategies overlap, and a seasoned marketer will consider several strategies when choosing an approximate price level. A. It may conflict with provisions of the Robinson-Patman Act. The offer, which is only made during the summer, is an example of _____ pricing. A postage-stamp pricing policy may cause nearby customers to pay an amount known as: If a firm hopes to induce a customer to pay more than she expected, which of the following offers should it make? Under oligopolistic competition the market consists of a few sellers who are highly sensitive to each other's pricing and market strategies. Payment to a channel member or buyer for performing marketing functions; also known as a functional discount. Pricing strategy involving the use of a relatively low entry price compared with competitive offerings, based on the theory that this initial low price will help secure market acceptance. Free. loss of sales of an existing product due to competition from a new product in the same line. foreign marketing costs, domestic competitors' prices. E. declining sales and profits. it enables shoppers to choose a desired price range and then focus on nonprice variables. Marriott uses a_____ strategy. Refund of a portion of the purchase price, usually granted by the product's manufacturer. As the product starts to move through the Early Adopters stage, the marketer will often reduce the price to begin drawing Early Majority buyers. Organizations must designate _______ in order to determine an internal transfer price from one to another. Any part of an organization to which revenue and controllable costs can be assigned. Practice of setting a limited number of prices for a selection of merchandise and marketing different product lines at each of these price levels. (skimming pricing strategy, penetration pricing strategy and competitive pricing strategy) Best Answer 100% (1 rating) Selling a product at a high price, sacrificing high sales to gain a high profit, therefore skimming the market. Cost assessed when a product is moved from one profit center within a firm to another. Variant of loss-leader pricing in which marketers offer prices slightly above cost to avoid violating minimum-markup regulations and earn a minimal return on promotional sales. Which global pricing strategy enables an international exporter to respond most readily to new competition in one of its foreign markets? Pricing policy based on the belief that a price ending with an odd number just under a round number is more appealing, for instance, $9.97 rather than $10. This is because: multichannel retailers may be more profitable than those selling through a single channel. This is an example of a: Product-line pricing is a strategy that involves the practice of marketing a selection of merchandise at a(n) _____ number of prices. This can also be used to introduce new product into a competitive market that contains an elite group of buyers that is able to pay a premium price. Over time, a skimming policy usually involves A. price movement up the demand curve. Skimming is a useful pricing strategy for businesses in innovative spaces where demand is extremely high for early-adoption (like many technology businesses) Demand-oriented pricing approaches rely heavily on competitors' prices. Pricing system for handling transportation costs under which all buyers are quoted the same price, including transportation expenses. A price skimming strategy focuses on maximizing profits by charging a high price for early adopters of a new product, then gradually lowering the price to … Generally, pricing strategies include the following five strategies. Pricing policy in which prices are stated in terms of a recognized unit of measurement or a standard numerical count. D. efforts to target the top portion of the demand curve. To recoup their enormous investments in ongoing research and development, such companies typically price new products at very high levels. A pricing policy is a general guideline that reflects ______ objectives. In competitive bidding, buyers accept the price quote which is: Which of the following is (are) true about price flexibility? It is paid to channel members for performing marketing functions. 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