B penetration pricing C price lining D odd even pricing E demand backward

B penetration pricing c price lining d odd even

  • Rutgers University
  • MARKETING 301
  • Notes
  • bigbobsnotes
  • 256
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B. penetration pricing. C. price lining. D. odd-even pricing. E. demand-backward pricing. Penetration pricing is setting a low initial price on a new product to appeal immediately to the mass market. AACSB: 3 LL: 3 Learning Objective: 14-01 Describe how to establish the "approximate price level" using demand-oriented; cost-oriented; profit-oriented; and competition-oriented approaches 14-106
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Chapter 14 - Arriving at the Final Price 26. (p. 347) Penetration pricing is intended to appeal to which market? A. Highly selective quality-seeking consumers B. Price-insensitive markets C. The mass market D. Specialty goods markets E. The same markets as skimming pricing Penetration pricing is setting a low initial price on a new product to appeal immediately to the mass market. AACSB: 3 LL: 2 Learning Objective: 14-01 Describe how to establish the "approximate price level" using demand-oriented; cost-oriented; profit-oriented; and competition-oriented approaches 27. (p. 347) Which of the following statements about penetration pricing is most accurate? A. Penetration pricing is a profit-oriented approach to pricing. B. Penetration pricing is a cost-oriented pricing method. C. Penetration pricing encourages competitors to enter a market. D. A penetration pricing strategy is more effective in a marketplace with price-sensitive consumers. E. Because penetration pricing is a high initial-price strategy, it will not attract competitors. Penetration pricing is setting a low initial price on a new product to appeal to a mass market, which is price-sensitive. AACSB: 3 LL: 2 Learning Objective: 14-01 Describe how to establish the "approximate price level" using demand-oriented; cost-oriented; profit-oriented; and competition-oriented approaches 14-107
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Chapter 14 - Arriving at the Final Price 28. (p. 347) A penetration pricing policy is likely to be most effective when (1) many segments of the market are price sensitive, (2) a low initial price discourages competitors from entering the market, and (3) __________. A. unit production and marketing costs fall dramatically as production volumes increase B. customers are willing to buy immediately at the high initial price C. lowering the price has only a minor effect on increasing sales volume and reducing unit costs D. when the high initial prices do not attract competitors E. when customers interpret high price as signifying high quality The conditions favoring penetration pricing are the reverse of those supporting skimming pricing: (1) many segments of the market are price sensitive, (2) a low initial price discourages competitors from entering the market, and (3) unit production and marketing costs fall dramatically as production volumes increase. AACSB: 3 LL: 2 Learning Objective: 14-01 Describe how to establish the "approximate price level" using demand-oriented; cost-oriented; profit-oriented; and competition-oriented approaches 29.
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