Chapter 11

Question 1

Four Approaches to Pricing

Answer 1

Cost-Plus Pricing, Competitive Pricing, Value Pricing, Golden Goose Pricing

Question 2

Price Penetration

Answer 2

Marketers set a relatively low entry price to capture market share quickly

Question 3

Price Skimming

Answer 3

Marketers set a relatively high price to obtain high margins at the expense of sales quantity

Question 4

Break Even Analysis

Answer 4

Useful method for examining the relationships between price, cost, revenue, and profit at various levels of sales

Question 5

Four Points to Consider When Comparing Perceived Value to Price

Answer 5

Reference Prices, Competitors, Substitutes, Marketing Efforts