Marketing Final Exam

Pricing is a cost oriented tactic creating unique

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Unformatted text preview: tactic. Creating unique products and changing packaging are both recommended tactics. PTS: 1 REF: 333 Thinking KEY: CB&E Model Pricing OBJ: 20-5 TOP: AACSB Reflective MSC: BLOOMS Analysis 106. All of the following are strategies to make the demand for a good or service more inelastic EXCEPT: a. b. c. d. e. reducing consumer awareness cultivating selected demand changing the package design creating a unique offering heightening buyer dependence ANS: A All of the choices are strategies to make the demand for a good or service more inelastic and will create buyer dependency. PTS: 1 REF: 333 Thinking KEY: CB&E Model Pricing OBJ: 20-5 TOP: AACSB Reflective MSC: BLOOMS Analysis 107. For sports marketers, an inelastic demand curve means that they have greater flexibility in making pricing decisions. What can a sports marketer do to make demand for his or her product more inelastic? a. Have a winning team that people want to see play. b. Sell the rights to buy a season pass. c. Eliminate all quantity discounts. d. Use discriminatory pricing. e. Any of these strategies will help render demand more inelastic. ANS: A There are several strategies to make demand more inelastic, and choice A is an illustration of the “create unique offerings” tactic. PTS: 1 REF: 333 Thinking KEY: CB&E Model Pricing OBJ: 20-5 TOP: AACSB Reflective MSC: BLOOMS Application 108. Which of the following pricing methods can be used to build market share during a recession? a. Price lining b. Resale price maintenance c. Psychological pricing d. Bundling e. Variable pricing ANS: D The other commonly used technique is value-based pricing. PTS: 1 REF: 334 Thinking KEY: CB&E Model Pricing OBJ: 20-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 109. During a recent worldwide recession when wine usage was declining, Nickel & Nickel launched a new brand of wine, which it sold at $125 a bottle. The wine is allowed to age three times as long as lower-priced wines, and the grapes used in the wine’s production are hand picked. Wine lovers appreciate how both production techniques improve wine quality. Nickel & Nickel used _____ to build market share. a. value-based pricing b. unbundling c. price lining d. status quo pricing e. leader pricing ANS: A Value-based pricing indicates the consumers are getting value for their money. PTS: 1 REF: 334 Thinking KEY: CB&E Model Pricing OBJ: 20-5 TOP: AACSB Reflective MSC: BLOOMS Application 110. Two effective pricing tactics, which can be used during a recession, to hold or build market share are: a. flexible pricing and price shading b. price shading and price lining c. unbundling and price shading d. value-based pricing and bundling e. price lining and escalator pricing ANS: D Value-based pricing stresses that customers are getting a good value for their money. If features are added to a bundle, customers may perceive the offering as having a greater value. PTS: 1 REF: 334 Thinking KEY: CB&E Model Pricing OBJ: 20-5 TO...
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This document was uploaded on 09/29/2013.

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