Question 1

Auction-type pricing is growing more popular, especially with the growth of the internet. Explain the three major types of auctions and their separate procedures.

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Question 2

Prior research has shown that although consumers may have fairly good knowledge of the range of prices involved, surprisingly few can recall specific prices of products accurately. When examining products, consumers often employ reference prices. List the possible prices consumers' use as their "reference."

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Question 3

An increasing number of companies are basing their prices on the customer's perceived value. Explain the concept of "perceived value" and what is the "key" to pricing in this manner.

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Question 4

In setting the "price" for their products or services, firms must stop and pause to reflect on the many factors affecting its pricing policy. List these six factors and briefly the subsequent components of each one of them.

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Question 5

In responding to a competitor's price cut, a firm in a nonhomogeneous market has more latitude and should consider what four issues before responding?

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Question 6

If the company has determined that the price for its product is "less elastic," then one or more of the following conditions must exist. List these conditions for a product to have an inelastic demand.

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Question 7

One factor leading to price increases is overdemand. When a company cannot supply all of its customers, it can raise its prices, ration supplies to customers, or both. What are four different ways the price can be raised?

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Question 8

What are the different types of promotional pricing?

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Question 9

Explain why and how the Internet is partially reversing the fixed price concept of retailing?

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Question 10

Explain why "value pricing" is not just a matter of simply setting lower prices?

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Quiz 14: Developing Pricing Strategies and Programs