Marketing Management Study Guide EOPA (Pricing)

Identify the factor based on the given explanation.

As competition increases, the price will decrease and vice versa

• Cost & Expenses

• Supply & Demand

• Consumer Perception

• Competition

• Government

What is the term that is used to describe the amount of sales that Coca-Cola has in the soft drink market that is a direct goal of pricing?

• Market share

• Return on investment

• Competition

• Cost-Benefit Analysis

Select the technique and example used in pricing products.

Technique:

Pricing products in a given category at a particular price.

Pricing

Example:

Pricing all pants at $25, $45, and $65.

• Promotional Pricing

• Everyday Low Price (EDLP)

• Pricing Lining

• Bundle Pricing

Select the technique and example used in pricing products.

Technique:

Pricing multiple products together rather than by themselves to send a message of value and increase sales volume.

Example:

3 cookies for $1

• Odd-Even Pricing

• Prestige Pricing

• Multiple Unit Pricing

• Bundle Pricing

What is the term that is used to determine the profitability of a product that is another goal of pricing?

• Market share

• Return on investment

• Competition

• Cost-Benefit Analysis

Select the technique and example used in pricing products.

Technique:

Pricing products lower than average in order to stimulate sales or just to get customers to come in and purchase not just the lower priced items, but other items as well.

Example:

Pricing a gallon of milk for $1 when normally it sells for $2.50

• Promotional Pricing

• Everyday Low Price (EDLP)

• Pricing Lining

• Bundle Pricing

What is the function of marketing that studies customer demand and product features in order to place a value of money on a product?

• Finance

• Price

• Product/Service Management

• Selling

Select the technique and example used in pricing products.

Technique:

Setting prices that end in either odd numbers to send a message of value or ending in positive numbers to send the message of high quality.

Example:

$19.99 – Value

$20 – High Quality

• Odd-Even Pricing

• Prestige Pricing

• Multiple Unit Pricing

• Bundle Pricing

Identify the factor based on the given explanation.

As government gets more involved and poses requirements, prices can increase. However, the government can also set a price ceiling such as in the natural gas market

• Cost & Expenses

• Supply & Demand

• Consumer Perception

• Competition

• Government

Identify the factor based on the given explanation.

As supply increases, prices should decrease, if demand increases, prices should increase and vice versa

• Cost & Expenses

• Supply & Demand

• Consumer Perception

• Competition

• Government