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10 Learning QuestionsChapter 14Developing Pricing Strategies and ProgramsMarketing Management 13th Ed.Kotler, Keller 2009<...
Buyers can get instant price comparisons from thousands of vendors<br />Sellers can name their price and have it met<br />...
Here is a short list of how the internet allows sellers to discriminate between buyers and buyers to discriminate between ...
Buyers can:<br />Get Instant price comparisons from thousands of vendors<br />Name their price and have it met<br />Get pr...
Buyers can get instant price comparisons from thousands of vendors<br />Sellers can name their price and have it met<br />...
Retail price<br />Regular price<br />Reference price<br />None of the above<br />2. __________ is a pricing information a ...
Reference prices<br />Pricing information a consumer retains in memory which is used to interpret and evaluate new price<b...
Retail price<br />Regular price<br />Reference price<br />None of the above<br />2. __________ is a pricing information a ...
Countertrade<br />Compensation deal<br />Buyback Arrangement<br />Offset<br />3. A British aircraft manufacturer sold plan...
Compensation deal<br />The seller receives some percentage of the payment in cash and the rest in products<br />Concept 04...
Countertrade<br />Compensation deal<br />Buyback Arrangement<br />Offset<br />3. A British aircraft manufacturer sold plan...
Customer-segment pricing<br />Channel pricing<br />Time pricing<br />Location pricing<br />4. Philippine Airlines Sept. 20...
Channel Pricing – same product, different places, different price.<br />Customer-segmented pricing – different customer gr...
Concept 07Adapting the Price: Differentiated Pricing<br />Location pricing – same product is priced differently at differe...
Customer-segment pricing<br />Channel pricing<br />Time pricing<br />Location pricing<br />4. Philippine Airlines Sept. 20...
Actively processing price information<br />Interpreting prices in terms of their knowledge from purchase experience<br />I...
Concept 03Understanding Pricing: Consumer Psychology and Pricing<br />Economists assume consumers are “price takers”<br />...
Actively processing price information<br />Interpreting prices in terms of their knowledge from purchase experience<br />I...
In both small and large companies the boss sets the price.<br />In both small and large companies the price is handled by ...
Concept 02Understanding Pricing: How Companies Price<br />Small companies: prices are set by boss.<br />Large companies: h...
In both small and large companies the boss sets the price.<br />In both small and large companies the price is handled by ...
Early payment<br />Credit card<br />Volume purchases<br />Off-season buying<br />7. In which scenario does a firm not give...
Concept 05Adapting the Price: Price Discounts and Allowances<br /><ul><li>Most companies will adjust their list price and ...
Early payment<br />Credit card<br />Volume purchases<br />Off-season buying<br />7. In which scenario does a firm not give...
Loss-leader pricing<br />Special event pricing<br />Longer payment terms<br />High-interest financing<br />8. Which of the...
Concept 06Adapting the Price: Promotional Pricing<br /><ul><li>Several pricing techniques to stimulate early purchase:
Low-Interest Financing
Longer Payment terms</li></ul>http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
Loss-leader pricing<br />Special event pricing<br />Longer payment terms<br />High-interest financing<br />8. Which of the...
Competitor’s market share<br />Product’s stage in the life cycle<br />Behaviour of costs with volume<br />Product’s import...
Concept 10Initiating and Responding to Price Changes: Responding to Competitors’ Price Changes<br />The company must consi...
Concept 10Initiating and Responding to Price Changes: Responding to Competitors’ Price Changes<br />The company must consi...
Competitor’s market share<br />Product’s stage in the life cycle<br />Behaviour of costs with volume<br />Product’s import...
Rising costs unmatched by productivity gains squeeze profit margins and lead companies to regular rounds of price increase...
Concept 09Initiating and Responding to Price Changes: Initiating Price Increases<br />Circumstances Provoking Price Increa...
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Chapter 14 - 10 Learning Questions

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Chapter 14 - 10 Learning Questions

  1. 1. 10 Learning QuestionsChapter 14Developing Pricing Strategies and ProgramsMarketing Management 13th Ed.Kotler, Keller 2009<br />SPGenius Nice Quitoriano<br />September 2011<br />Prof. Bong de Ungria<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  2. 2. Buyers can get instant price comparisons from thousands of vendors<br />Sellers can name their price and have it met<br />Buyers can get products free<br />Sellers can monitor customer behaviour and tailor offers to individuals<br />1. The following statements are true except:<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  3. 3. Here is a short list of how the internet allows sellers to discriminate between buyers and buyers to discriminate between sellers<br />Concept 01Understanding Pricing: A Changing Pricing Environment<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  4. 4. Buyers can:<br />Get Instant price comparisons from thousands of vendors<br />Name their price and have it met<br />Get products free<br />Sellers can:<br />Monitor customer behaviour and tailor offers to individuals<br />Give certain customers access to special prices<br />Buyers and sellers can:<br />Negotiate prices online auctions and exchanges<br />Concept 01Understanding Pricing: A Changing Pricing Environment<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  5. 5. Buyers can get instant price comparisons from thousands of vendors<br />Sellers can name their price and have it met<br />Buyers can get products free<br />Sellers can monitor customer behaviour and tailor offers to individuals<br />1. The following statements are true except:<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  6. 6. Retail price<br />Regular price<br />Reference price<br />None of the above<br />2. __________ is a pricing information a consumer retains in memory which is used to interpret and evaluate new price<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  7. 7. Reference prices<br />Pricing information a consumer retains in memory which is used to interpret and evaluate new price<br />Concept 03Understanding Pricing: Consumer Psychology and Pricing<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  8. 8. Retail price<br />Regular price<br />Reference price<br />None of the above<br />2. __________ is a pricing information a consumer retains in memory which is used to interpret and evaluate new price<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  9. 9. Countertrade<br />Compensation deal<br />Buyback Arrangement<br />Offset<br />3. A British aircraft manufacturer sold planes to Brazil for 70% cash and the rest is coffee. This act of trading and pricing is called:<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  10. 10. Compensation deal<br />The seller receives some percentage of the payment in cash and the rest in products<br />Concept 04Adapting the Price: Geographical Pricing(Cash, Countertrade, Barter)<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  11. 11. Countertrade<br />Compensation deal<br />Buyback Arrangement<br />Offset<br />3. A British aircraft manufacturer sold planes to Brazil for 70% cash and the rest is coffee. This act of trading and pricing is called:<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  12. 12. Customer-segment pricing<br />Channel pricing<br />Time pricing<br />Location pricing<br />4. Philippine Airlines Sept. 20th flight to Davao’s Economy seat costs PhP1,499 while VIP seat cost PhP 2,500. This scenario is an example of<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  13. 13. Channel Pricing – same product, different places, different price.<br />Customer-segmented pricing – different customer groups pay different prices for same product or service<br />Concept 07Adapting the Price: Differentiated Pricing<br />Coffee per cup from machine<br />Office = PhP15.00<br />Airport = PhP20.00<br />Men = PhP40.00<br />Students = PhP35.00<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  14. 14. Concept 07Adapting the Price: Differentiated Pricing<br />Location pricing – same product is priced differently at different locations even though the cost of offering it at each location is the same.<br />Time pricing – prices are varied by season, day, or hour<br />Dutch Metro “Thalys” Day Tour<br />First Class = EUR 6.30<br />Second Class = EUR 5.20<br />Route : Koog-Zandijk to Schiphol<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  15. 15. Customer-segment pricing<br />Channel pricing<br />Time pricing<br />Location pricing<br />4. Philippine Airlines Sept. 20th flight to Davao’s Economy seat costs PhP1,499 while VIP seat cost PhP 2,500. This scenario is an example of<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  16. 16. Actively processing price information<br />Interpreting prices in terms of their knowledge from purchase experience<br />Interpreting prices in terms of formal and informal communications, online resources and other factors<br />None of the above<br />5. Economists assume that consumers are _______<br />http://jeannequitoriano.blogspot.com<br />
  17. 17. Concept 03Understanding Pricing: Consumer Psychology and Pricing<br />Economists assume consumers are “price takers”<br />Marketers recognize consumers:<br /><ul><li>Actively process price info</li></ul>- Interpreting prices in terms of their knowledge from prior purchasing experience, formal communications, informal communications, online resources, or other factors.<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  18. 18. Actively processing price information<br />Interpreting prices in terms of their knowledge from purchase experience<br />Interpreting prices in terms of formal and informal communications, online resources and other factors<br />None of the above<br />5. Economists assume that consumers are _______<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  19. 19. In both small and large companies the boss sets the price.<br />In both small and large companies the price is handled by division and product-line managers.<br />In small companies the price is set by the boss, in large companies by division and product-line managers.<br />In large companies the price is set by the boss, in small companies by division and product-line managers.<br />6. Which of the following is correct?<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  20. 20. Concept 02Understanding Pricing: How Companies Price<br />Small companies: prices are set by boss.<br />Large companies: handled by division and product-line managers<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  21. 21. In both small and large companies the boss sets the price.<br />In both small and large companies the price is handled by division and product-line managers.<br />In small companies the price is set by the boss, in large companies by division and product-line managers.<br />In large companies the price is set by the boss, in small companies by division and product-line managers.<br />6. Which of the following is correct?<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  22. 22. Early payment<br />Credit card<br />Volume purchases<br />Off-season buying<br />7. In which scenario does a firm not give discounts and allowances?<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  23. 23. Concept 05Adapting the Price: Price Discounts and Allowances<br /><ul><li>Most companies will adjust their list price and give discounts and allowances for early payment, volume purchases, and off-season buying</li></ul>http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  24. 24. Early payment<br />Credit card<br />Volume purchases<br />Off-season buying<br />7. In which scenario does a firm not give discounts and allowances?<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  25. 25. Loss-leader pricing<br />Special event pricing<br />Longer payment terms<br />High-interest financing<br />8. Which of the following is not an example of promotional pricing?<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  26. 26. Concept 06Adapting the Price: Promotional Pricing<br /><ul><li>Several pricing techniques to stimulate early purchase:
  27. 27. Low-Interest Financing
  28. 28. Longer Payment terms</li></ul>http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  29. 29. Loss-leader pricing<br />Special event pricing<br />Longer payment terms<br />High-interest financing<br />8. Which of the following is not an example of promotional pricing?<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  30. 30. Competitor’s market share<br />Product’s stage in the life cycle<br />Behaviour of costs with volume<br />Product’s importance in the company’s portfolio<br />9. When responding to competitor price changes, the company considers all of the following except:<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  31. 31. Concept 10Initiating and Responding to Price Changes: Responding to Competitors’ Price Changes<br />The company must consider the following:<br />Product’s stage in the life cycle<br />Product’s importance in the company’s portfolio<br />Competitor’s intentions and resources<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  32. 32. Concept 10Initiating and Responding to Price Changes: Responding to Competitors’ Price Changes<br />The company must consider the following:<br />Market’s Price and Quality Sensitivity<br />Behaviour of costs with volume<br />Alternative Opportunities<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  33. 33. Competitor’s market share<br />Product’s stage in the life cycle<br />Behaviour of costs with volume<br />Product’s importance in the company’s portfolio<br />9. When responding to competitor price changes, the company considers all of the following except:<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  34. 34. Rising costs unmatched by productivity gains squeeze profit margins and lead companies to regular rounds of price increases<br />Companies often raise their prices by more than the cost increase, in anticipation of further inflation or government price controls<br />Company raises prices when a company cannot supply all its customers<br />None of the above<br />10. The definition of anticipatory pricing is:<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  35. 35. Concept 09Initiating and Responding to Price Changes: Initiating Price Increases<br />Circumstances Provoking Price Increase<br />Cost Inflation<br /><ul><li>Rising costs unmatched by productivity gains squeeze profit margins and lead companies to regular rounds of price increases</li></ul>Anticipatory Pricing<br /><ul><li>Companies often raise their prices by more than the cost increase, </li></ul>in anticipation of further inflation or government price controls<br />Overdemand<br /><ul><li>Company raise prices when a company cannot supply all its customers</li></ul>http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  36. 36. Rising costs unmatched by productivity gains squeeze profit margins and lead companies to regular rounds of price increases<br />Companies often raise their prices by more than the cost increase, in anticipation of further inflation or government price controls<br />Company raises prices when a company cannot supply all its customers<br />None of the above<br />10. The definition of anticipatory pricing is:<br />http://jeannequitoriano.blogspot.com<br />http://jeannequitoriano.blogspot.com<br />
  37. 37. 10 Learning QuestionsChapter 14Developing Pricing Strategies and ProgramsMarketing Management 13th Ed.Kotler, Keller 2009<br />SPGenius Nice Quitoriano<br />September 2011<br />Prof. Bong de Ungria<br />http://jeannequitoriano.blogspot.com<br />

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