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| Reducing prices unnecessarily can lead to lost profits and damaging price wars and signal that the price is more important than customer ________. |
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| _________ is the only marketing mix element that produces revenue. |
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| ______ is the least understood marketing variable, yet is controllable in an unregulated market. |
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The most common pricing mistakes include:
a. pricing that is too ______ oriented
b. prices that are not revised to reflect ________ changes
c. pricing that does not take the rest of the marketing ______ into account
d. prices that are not varied enough for different product items and market ___________ |
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| Many companies want to set a price that will _________ current profits. |
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| Some companies want a _______ market-share position, believing the largest market share will eventually enjoy low costs and high long-run profit. |
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| Price must be coordinated with _______, ________, and _______ decisions to form a consistent and effective marketing program. |
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| design, distribution, promotion |
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| A company wants to charge a price that covers costs for _________, ___________, and __________ the product. |
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| producing, distributing, promoting |
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| ________ costs (aka overhead) are costs that do not vary with production or sales level. |
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| ___________ costs vary with the total of units produced. |
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| ______ costs are the sum of the fixed and variable costs for any given level of production. |
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| While costs set the lower limits of prices, the ________ and __________ set the upper limit. |
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| Before setting prices, a marketer must understand the relationship between _______ and ________ for a product. |
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| _________, part of effective revenue management, involves training sales and reservations employees to continuously offer a higher-priced product. |
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| ________-oriented pricing means the marketer cannot design a marketing program and then set the price. |
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| Good pricing begins with analyzing consumer _______ and price ________ |
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| Buyers are _________ price-sensitive when the product is unique or high in quality, prestige, or exclusiveness. |
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| Consumers are less price-sensitive when ________ products are hard to find. |
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| If demand is _______ rather than ________, sellers generally consider lowering their prices. |
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| Creating the perception that your offering is _________ from those competitors avoids price competition. |
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| Existence of ___________ of which buyers are unaware cannot affect their purchase behavior. |
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| Customers are more price-sensitive when the price of the product accounts for a large share of the total cost of the end ________. |
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| Many purchases have __________ costs. |
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| The more someone spends on a product, the more _______ he or she is to the product's price. |
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| Consumers tend to equate price with _________, especially when they lack prior product experience. |
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| When reacting to environmental pressures created by the _______-environment, a company must consider the impact its pricing policies will have on its _______-environment. |
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Companies set prices by selecting a general pricing approach including one or more of these sets of factors:
a. the _______-based approach (cost-plus pricing, break-even analysis, and target profit pricing)
b. the ______-based approach (perceived value pricing)
c. the _________-based approach (going rate) |
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| The simplest pricing method is ______-plus pricing, adding a standard markup to the cost of the product. |
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| _______-based pricing uses the buyers' perceptions of value, not the seller's cost, as the key to pricing. |
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| A strategy of __________ pricing is the establishment of price based largely on those of competitors, with less attention paid to costs or demand. |
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| When _________ is hard to measure, firms feel that the going price represents the collective wisdom of the industry concerning the price that will yield a fair return. |
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| _________ Pricing - hotels or restaurants seeking to position themselves as luxurious and elegant enter the market with a high price to support this position. |
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| Market-_________ Pricing - setting a high price when the market is price-insensitive. |
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| Market-___________ Pricing - other companies set a low initial price to penetrate the market quickly and deeply, attracting many buyers and winning a large market share. |
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| Product-__________ Pricing - sellers combine several products and offer them at a reduced price. |
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| __________ pricing refers to segmentation of the market and pricing differences based on price elasticity characteristics of these segments. |
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| Companies often adjust basic prices to allow for differences in ___________, __________, and ___________. |
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| customers, products, locations |
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| The concept behind revenue management is to manage _________ and _________ effectively by pricing differences based on the elasticity of demand for selected customer segments. |
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| An effective revenue management system establishes __________ to prohibit customers from one segment receiving prices intended for another. |
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| When companies use __________ pricing, they temporarily price their products below list price. |
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| _______ demand leads to price increases |
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