Ch.14 10 questions from kotler assignment

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  • Answer: revising price to capitalize on market changes
  • Answer: Price cues
  • Answer: Maximum market skimming
  • Answer: Price-quality Inferences
  • Answer: Buyers are less price sensitive when there are few are no substitutes
  • Answer: Unbundling
  • Answer: Delayed quotation pricing
  • Answer: Increasing the number of sizes and models offered
  • Answer: Value Pricing
  • Answer: Price is a major factor when customer buys a product
  • Ch.14 10 questions from kotler assignment

    1. 1. 10 Questions for Chapter 14 (Developing Pricing Strategies and Programs by Kotler)<br />Prepared By: Antonieta Manalang<br />Date: September 2, 2010<br />
    2. 2. The following are pricing mistakes except<br /><ul><li>Determining costs and taking traditional industry margins
    3. 3. Revising price to capitalize on market changes
    4. 4. Setting price independently of the rest of the marketing mix
    5. 5. Standardizing price by product item, market segment, distribution channels, and purchase occasion
    6. 6. Setting various price objectives</li></li></ul><li>______ is a type of consumer pricing psychology wherein consumers tend to process prices in a “left-to-right” manner rather than by rounding, e.g. stereo amplifier priced at 299 instead $300 as a price in the $200 range rather than $300 range <br /><ul><li>Price Cue
    7. 7. Price ending
    8. 8. Reference Price
    9. 9. Lower Bound Price
    10. 10. Price-quality inference</li></li></ul><li>Which of the following statement is FALSE in considering a pricing objective?<br /><ul><li>Survival: Prices are lowered to ensure inventory turnover but price must cover variable costs & fixed costs.
    11. 11. Maximum current profit: price is set to maximize current profit, cash flow, or ROI
    12. 12. Maximum Market Skimming: Prices start low and increased overtime
    13. 13. Maximum sales growth : low price is set assuming that marketing is price sensitive
    14. 14. Marketing penetration pricing: Goal is high sales volume</li></li></ul><li>A behavior wherein a consumer prefers to buy an Armani shirt at $275 over a GAP shirt which costs $14.90 is an example of:<br /><ul><li>Reference Price
    15. 15. Price-quality inferences
    16. 16. Price Cues
    17. 17. Price endings</li></li></ul><li>Which of the following statement is TRUE on factors to price sensitivity?<br /><ul><li>Customers are more price sensitive to low-cost items or items they buy infrequently
    18. 18. Buyers are less price sensitive when there are few are no substitutes
    19. 19. Customers readily notice the price increases
    20. 20. Customers easily changed their buying habits
    21. 21. Customers think that higher prices for the items they buy infrequently are not justified</li></li></ul><li>A company’s way of increasing the price by maintaining its price but removes or prices separately one or more elements that were part of the former offer, such as free delivery or installation<br /><ul><li>Discount Reduction
    22. 22. Unbundling
    23. 23. Escalator clauses
    24. 24. Delayed quotation pricing
    25. 25. Anticipatory pricing</li></li></ul><li>The following are price-adaptation strategies except<br /><ul><li>Geographical pricing
    26. 26. Price discounts and allowances
    27. 27. Promotional Pricing
    28. 28. Delayed quotation pricing
    29. 29. Differentiated Pricing</li></li></ul><li>Companies do the following approaches to avoid price increase shock among consumers except<br />Substituting less-expensive materials or ingredients<br />Increasing the number of sizes and models offered<br />Shrinking the amount of product<br />Creating new economy brands<br />Reducing or removing product features<br />
    30. 30. A pricing method wherein customers are charged of low price for a high-quality offering<br /><ul><li>Perceived-value pricing
    31. 31. Target-return Pricing
    32. 32. Markup Pricing
    33. 33. Going Rate Pricing
    34. 34. Value Pricing</li></li></ul><li>Which of the following statement is FALSE on the impact of other marketing activities?<br /><ul><li>Consumers are willing to pay higher prices for known products than for unknown products
    35. 35. Brands with average relative quality but high relative advertising budgets cant charge higher prices
    36. 36. Price is a major factor when customer buys a product
    37. 37. Customer support is important for buyers
    38. 38. Brands with low quality and low advertising charged the lowest prices</li>

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