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