MCS 1000: C.11 Pricing Concepts and Strategies-Establishing Values Question and answers rated A+
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Course
MCS 1000
Institution
MCS 1000
MCS 1000: C.11 Pricing Concepts and Strategies-Establishing Values Question and answers rated A+
price - correct answer the overall sacrifice a consumer is willing to make to acquire a specific product or service
nonmonetary sacrifice - correct answer the value of the time necessary to ac...
MCS 1000: C.11 Pricing Concepts and
Strategies-Establishing Values Question
and answers rated A+
price - correct answer ✔the overall sacrifice a consumer is willing to make to
acquire a specific product or service
nonmonetary sacrifice - correct answer ✔the value of the time necessary to
acquire the product or service
all of which the buyer must give up to take posession of the product
true - correct answer ✔The key to successful pricing is to match the product
or service with the consumer's value perceptions
- correct answer ✔price is the only element of the marketing mix that
generates revenue
true - correct answer ✔Price us the most challenging of the four P's to
manage, partly because it is often the least understood
False, price is also an information cue - correct answer ✔price is only a
sacrifice
true - correct answer ✔price can signal quality
,Five C's of Pricing - correct answer ✔1.company Objectives
2.customers
3.costs
4.competition
5.channel members
Company objectives - correct answer ✔Each firm embraces an objective that
fits with where management thinks the firm needs to go to be successful, in
whatever way they define success
These specific _________ usually reflect how the firm intends to grow
Profit orientation - correct answer ✔A company objective that can be
implemented by focusing on target profit pricing, maximizing profits, or target
return pricing
ex: Institute a company-wide policy that all products must provide for at least
an 18-percent profit margin to reach a particular profit goal for the firm
target profit pricing - correct answer ✔a pricing strategy implemented by
firms when they have a particular profit goal as their overriding concern; uses
price to stimulate a certain level of sales at a certain profit per unit
maximizing profits strategy - correct answer ✔a mathematical model that
captures all the factors required to explain and predict sales and profits, which
should be able to identify the price at which its profits are maximized
target return pricing - correct answer ✔a pricing strategy implemented by
firms less concerned with the absolute level of profits and more interested in
the rate at which their profits are generated relative to their investments;
, designed to produce a specific return on investment, usually expressed as a
percentage of sales
Sales orientation - correct answer ✔A company objective based on the belief
that increasing sales will help the firm more than will increasing profits
ex: A new health club might focus on unit sales or market share and therefore
be willing to set a lower membership fee and accept less profit at first
Set prices low to generate new sales and take sales away from competitors,
even if profits suffer
true - correct answer ✔rarely is the lowest-price offering the dominant brand
in a given market
true - correct answer ✔companies can gain market share simply by offering
a high-quality product at a fair price, as long as they generate high-value
perceptions among consumers
true - correct answer ✔for sales to increase, consumers must see greater
value
competitor orientation - correct answer ✔A company objective based on the
premise that the firm should measure itself primarily against its competition
customer orientation - correct answer ✔Pricing orientation that explicitly
invokes the concept of customer value and setting prices to match consumer
expectations
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