Pricing Strategies Flashcard 1

Front

Which of the following best describes the concept of economic value in pricing strategy? It focuses solely on production costs, It emphasizes maximizing perceived value to customers, It disregards customer perception and focuses on competitor prices, It is mainly about reducing operational expenses

Back

It emphasizes maximizing perceived value to customers

Front

In the Economic Value Estimation (EVE) model, the 'reference value' refers to:

Back

The price of the next-best competitive alternative

Front

Which company is cited as a successful practitioner of economic value-based pricing? Options: Samsung, Apple, Netflix, PLDT

Back

Apple

Front

Which of the following is a key risk of cost-plus pricing? It overemphasizes customer satisfaction, It ignores competitors' pricing strategies, It may lead to a 'death spiral' effect when costs rise, It automatically ensures profitability in the long run

Back

It may lead to a 'death spiral' effect when costs rise

Front

Differentiation value in pricing refers to:

Back

The net additional value compared to the next-best alternative

Front

According to Nagle & Müller (2018), what role should marketing and finance play in pricing?

Back

Both must coordinate to align customer value with profitability

Front

Which of the following is an example of bundled pricing? Options: Charging less for larger quantities of the same item, Offering mobile, internet, and cable services in one package, Selling a premium version of a software, Introducing seasonal discounts

Back

Offering mobile, internet, and cable services in one package

Front

Share-driven pricing is also known as:

Back

Competition-driven pricing

Front

What is the major drawback of relying solely on willingness-to-pay surveys?

Back

Customers may misrepresent their true valuation

Front

In the context of GenetiCorp's case, the EnSyn kit represents:

Back

The reference value