week 5

Question 1

value that is exchanged for products or services in a marketing transaction

Answer 1

price

Question 2

how to determine your price?

Answer 2

cost of products including shipping and handling costs

Question 3

consumer interpretation of prices (3)

Answer 3

1. value consciousness
2. price consciousness
3. price sensitivity

Question 4

concerned about price and quality of product

Answer 4

value conscious

Question 5

striving to pay low prices

Answer 5

price conscious

Question 6

drawn to products that signify prominence and status

Answer 6

prestige sensitive

Question 7

adding a predetermined percentage or mark on to the product cost to arrive at a selling price for each product

Answer 7

cost plus approach

Question 8

assesses the competitive conditions and then makes a judgmental determination of what you should charge for the product

Answer 8

competition based pricing

Question 9

methods of pricing (6)

Answer 9

1. cost plus approach
2. competition based pricing
3. penetration pricing
4. economy pricing
5. package pricing
6. psychological pricing

Question 10

setting an initial low price at the beginning of your business in hopes of attracting customers. prices will rise as you gain more market share

Answer 10

penetration pricing

Question 11

this is a no frills low price. often called discounters

Answer 11

economy pricing

Question 12

service and merchandise are packaged at a set price. consumers like the ease of purchasing packages. complies with FTC requirements

Answer 12

package pricing

Question 13

strategy where merchandise price ends in an odd number (5,7 or 9) consumers perceive it to be a fairer price

Answer 13

psychological pricing

Question 14

pricing strategies (3)

Answer 14

1. customer value based pricing
2. cost based pricing
3. competition based pricing

Question 15

setting prices based up the buyers perceived value

Answer 15

customer value based pricing

Question 16

pricing based on the cost of producing, distributing, and selling the product plus a fair rate of return for effort and risk

Answer 16

cost based pricing

Question 17

setting prices based on the competitors strategies, prices, costs, and market offerings

Answer 17

competition based pricing

Question 18

price determination (4)

Answer 18

1. fixed multiple or times factor
2. graduated recovery
3. declining pricing
4. modified declining

Question 19

mark up is multiple by a constant factor

-same mark up to all units

Answer 19

fixed multiple or times factor

Question 20

a method of price quotation which creates one total price package for both service and merchandise

Answer 20

unit pricing

Question 21

a method of price quotation showing separately the price of the services and the price of the casket

Answer 21

bi-unit pricing

Question 22

a method of price quotation “Y” which the charges are broken down into several component parts, such as professional services, facitlites, automotive equipment and merchandise

Answer 22

functional pricing

Question 23

the method of price quotation by which each unit of service and/or merchandise is priced separately GPL

Answer 23

itemization