Pricing Strategy and Tactics

BAMM6307 Pricing Strategy and Tactics
(Prelim-Q1, Q2&PreLim Exam)

This course aims to prepare students for addressing strategic and tactical pricing issues and identifying profit-boosting changes in pricing practices across a range of professional contexts. The course establishes a foundation for effective pricing decisions by teaching key economic, analytical and behavioral concepts associated with costs, customer behavior and competition; introduces students to advanced pricing techniques that aim to create additional value, including dynamic pricing, segmented pricing, pricing structures and promotions.

Question 1

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What means that differences in pricing across customers and changes over time reflect differences or changes in the value to customers?

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Question 2

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What value refers to the many ways that a product creates innate satisfaction for the customer?

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Question 3

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What value accounts for the fact that the value one can capture for commodity attributes of an offer is limited to whatever competitors charge for them?

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Question 4

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What value depends on the alternatives customers have available to satisfy the same need?

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Question 5

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What value is maximum price that a “smart shopper,” fully informed about the market and seeking the best value, would pay?

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Question 6

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What value is the most important element for most business-to- business purchases?

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Question 7

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Answer the following questions by matching the right answer in provided answers below.

What value accounts for the fact that the value one can capture for commodity attributes of an offer is limited to whatever competitors charge for them?

What refers to rules or habits, either explicit or cultural, that determine how a company varies its prices when faced with factors other than value and cost to serve that threaten its ability to achieve it objectives?

the price of the customer’s best alternative

the utility gained from the product

What value is the net benefits that your product or service delivers to customers over and above those provided by the competitive reference product?

What principle means that the company evaluates its success at price management by what it earns relative to alternative investments rather than by the revenue it generates relative to its competitors.

What value is calculated as the price of the customer’s best alternative plus the worth of whatever differentiates the offering from the alternative?

 the worth of whatever differentiates the offering from the alternative

the set of alternative products under consideration for purchase

What value represents the total cost savings or income enhancements that a customer accrues as a result of purchasing a product?

Question 8

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What value represents the total cost savings or income enhancements that a customer accrues as a result of purchasing a product?

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Question 9

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What value represents the total cost savings or income enhancements that a customer accrues as a result of purchasing a product?

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Question 10

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What are the two forms of differentiation value?

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Question 11

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What value is  the heart of pricing strategy?

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Question 1

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What is being managed by professional procurement managers using sophisticated information systems and aggressive negotiation tactics?

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Question 2

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What is tendency to evaluate price differences proportionately?

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Question 3

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What is the central part for goods in which monetary value drivers?

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Question 4

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What stage is when customer collects initial product data with the objective of narrowing down the choice set to a manageable number of options?

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Question 5

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What stage is when a customer chooses distribution channel from which to make purchase and conducts transaction?

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Question 6

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What is the term when high-end buyers perceive significantly greater value from purchasing this product, relative to other buyers?

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Question 7

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What is the final stage of buying process?

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Question 8

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What the stage at which the customer becomes aware of a need and begins the search for a suitable offering to satisfy it?

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Question 9

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What are those distributors in countries where prices are lower will ship products to one where prices are higher, which often happens simply due to changes in currency values?

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Question 10

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What do health clubs offer in order to influence value perception?

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Question 11

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What pricing is example of segmenting by time of purchase?

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Question 12

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Who evaluates the buyer’s willingness to pay?

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Question 13

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What tool is used by sales people to develop customer-specific monetary value?

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Question 14

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What is the financial and nonfinancial cost, relative to the expenditure in the category, that a customer must incur to determine differences in features and benefits across alternatives?

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Question 15

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What stage is when a customer gathers more detailed information to make choice based on price and value?

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Question 16

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What stage has a critically important stage for complex goods with a high cost of search?

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Question 17

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What influence reference prices strategically?

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Question 18

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What is the agreement by the seller to bear part of the shipping costs of the product, the amount of which depends upon the buyer’s location?

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Question 19

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What do buyer considers a reasonable and fair price for a product?

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Question 20

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What facilitate segmented pricing, increasing profitability,in different customer segments?

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Question 1

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What is the central part for goods in which monetary value drivers?

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Question 2

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What type of economic value is associated with differentiation?

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Question 3

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What pricing strategy involves a strategic decision not to use price to gain market share, while not allowing price alone to restrict it?

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Question 4

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What stage is when customer collects initial product data with the objective of narrowing down the choice set to a manageable number of options?

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Question 5

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What the stage at which the customer becomes aware of a need and begins the search for a suitable offering to satisfy it?

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Question 6

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What do health clubs offer in order to influence value perception?

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Question 7

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What value depends on the alternatives customers have available to satisfy the same need?

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Question 8

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What are the rules or habits, either explicit or cultural, that determine how a company varies its prices when faced with factors other than value and cost that threaten its ability to achieve its objectives?

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Question 9

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What is designed to capture high margins at the expense of large sales volume?

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Question 10

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What is the formulas and calculations that estimate the differentiated monetary worth of each unit of product performance?

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Question 11

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What is the maximum price that a “smart shopper,” fully informed about the market and seeking the best value, would pay?

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Question 12

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What refers to rules or habits, either explicit or cultural, that determine how a company varies its prices when faced with factors other than value and cost to serve that threaten its ability to achieve it objectives?

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Question 13

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Profit-driven means that the company evaluates its success at price management by what it earns relative to alternative investments rather than by the revenue it generates relative to its competitors.

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Question 14

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What refers to the overall satisfaction that a customer receives from using a product or service offering?

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Question 15

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What is the requirement for strategic pricing?

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Question 16

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What is the term for the lowest allowable price point?

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Question 17

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What refers to the many ways that a product creates innate satisfaction for the customer?

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Question 18

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What is the most important element for most business-to- business purchases?
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Question 19

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What rewards those customers who are aggressive negotiators?
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Question 20

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What stage is when a customer chooses distribution channel from which to make purchase and conducts transaction?

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Question 21

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What price setting process develops communication plan to ensure prices are perceived to be fair?

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Question 22

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What becomes a mechanism for raising prices for managers?

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Question 23

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What price setting process determines the amount of differential value to be captured with the price?

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Question 24

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What is the term for the highest allowable price point?

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Question 25

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What stage is when a customer gathers more detailed information to make choice based on price and value?

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Question 26

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What is the financial and nonfinancial cost, relative to the expenditure in the category, that a customer must incur to determine differences in features and benefits across alternatives?

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Question 27

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What is a tactical lever to close deals and achieve sales objectives?
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Question 28

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What is the term when high-end buyers perceive significantly greater value from purchasing this product, relative to other buyers?

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Question 29

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What pricing strategy involves a strategic decision not to use price to gain market share, while not allowing price alone to restrict it?

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Question 30

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What are those distributors in countries where prices are lower will ship products to one where prices are higher, which often happens simply due to changes in currency values?

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Question 31

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What stage has a critically important stage for complex goods with a high cost of search?

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Question 32

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What represents the total cost savings or income enhancements that a customer accrues as a result of purchasing a product?econ

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Question 33

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What tool is used by sales people to develop customer-specific monetary value?

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Question 34

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What pricing strategy involves setting a price low enough to attract and hold a large base of customers?

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Question 35

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Answer by matching the right term being ask in each item.

a means to charge different customers different price levels for the same products and services using the same metrics

 

a form of self-induced buyer identification— especially through the use of coupons and sales promotions, a frequent tool of consumer marketers

 

a critically important stage for complex goods with a high cost of search.

 

What is the utility gained from the product?

 

_______ the coordination of otherwise independent activities to achieve a common objective

 

_______ is the agreement by the seller to bear part of the shipping costs of the product, the amount of which depends upon the buyer’s location.

 

involves winnowing the alternatives to a manageable number in order to conduct a more detailed product evaluation that ultimately leads to choice

 

What is the units to which the price is applied?

 

_____ used by sales people to develop customer-specific monetary value estimates with the customer in the course of a sales call.

 

_______ are based on the customer’s total purchases over a month or year rather than on the amount purchased at any one time

 

Who takes a personal interest in the customer, asking what the customer does for a living (ability to pay), how long he has lived in the area (knowledge of the market), what kinds of cars she has bought before (loyalty to a particular brand), where she lives (value placed on the dealer’s location), and whether she has looked at, or is planning to look at, other cars (awareness of alternatives)

 

______ is one that causes revenues to vary with differences in the two key elements that drive potential profitability

 

refer to the difference between the use value of a product and its market price

 

Refers to the overall satisfaction that a customer receives from using a product or service offering

 

An ideal price metric that tie what the customer pays for a product or service directly to the economic value received and the incremental cost to serve

 

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Question 36

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What value is maximum price that a “smart shopper,” fully informed about the market and seeking the best value, would pay?

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