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

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 2

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 3

Complete
Mark 0.00 out of 1.00
Flag question

Question text

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?

Select one:

Question 4

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 5

Complete
Mark 0.00 out of 1.00
Flag question

Question text

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

Select one:

Question 6

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 7

Complete
Mark 4.00 out of 10.00
Flag question

Question text

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

Complete
Mark 0.00 out of 1.00
Flag question

Question text

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

Select one:

Question 9

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 10

Complete
Mark 0.00 out of 1.00
Flag question

Question text

What are the two forms of differentiation value?

Select one:

Question 11

Complete
Mark 0.00 out of 1.00
Flag question

Question text

What value is  the heart of pricing strategy?

Select one:

Question 1

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 2

Complete
Mark 1.00 out of 1.00
Flag question

Question text

What is tendency to evaluate price differences proportionately?

Select one:

Question 3

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 4

Complete
Mark 0.00 out of 1.00
Flag question

Question text

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

Select one:

Question 5

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 6

Complete
Mark 0.00 out of 1.00
Flag question

Question text

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

Select one:

Question 7

Complete
Mark 1.00 out of 1.00
Flag question

Question text

What is the final stage of buying process?

Select one:

Question 8

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 9

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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?

Select one:

Question 10

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 11

Complete
Mark 1.00 out of 1.00
Flag question

Question text

What pricing is example of segmenting by time of purchase?

Select one:

Question 12

Complete
Mark 1.00 out of 1.00
Flag question

Question text

Who evaluates the buyer’s willingness to pay?

Select one:

Question 13

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 14

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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?

Select one:

Question 15

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 16

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 17

Complete
Mark 1.00 out of 1.00
Flag question

Question text

What influence reference prices strategically?

Select one:

Question 18

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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?

Select one:

Question 19

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 20

Complete
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Question 1

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 2

Correct
Mark 1.00 out of 1.00
Flag question

Question text

What type of economic value is associated with differentiation?

Select one:

Feedback

Question 3

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 4

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 5

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 6

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 7

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 8

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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?

Select one:

Feedback

Question 9

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 10

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 11

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 12

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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?

Select one:

Feedback

Question 13

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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.

Select one:

Feedback

Question 14

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 15

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

What is the requirement for strategic pricing?

Select one:

Feedback

Question 16

Correct
Mark 1.00 out of 1.00
Flag question

Question text

What is the term for the lowest allowable price point?

Select one:

Feedback

Question 17

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 18

Correct
Mark 1.00 out of 1.00
Flag question

Question text

What is the most important element for most business-to- business purchases?
Select one:

Feedback

Question 19

Correct
Mark 1.00 out of 1.00
Flag question

Question text

What rewards those customers who are aggressive negotiators?
Select one:

Feedback

Question 20

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 21

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 22

Correct
Mark 1.00 out of 1.00
Flag question

Question text

What becomes a mechanism for raising prices for managers?

Select one:

Feedback

Question 23

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 24

Correct
Mark 1.00 out of 1.00
Flag question

Question text

What is the term for the highest allowable price point?

Select one:

Feedback

Question 25

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 26

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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?

Select one:

Feedback

Question 27

Correct
Mark 1.00 out of 1.00
Flag question

Question text

What is a tactical lever to close deals and achieve sales objectives?
Select one:

Feedback

Question 28

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 29

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 30

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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?

Select one:

Feedback

Question 31

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 32

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 33

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 34

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback

Question 35

Partially correct
Mark 14.00 out of 15.00
Flag question

Question text

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

 

Feedback

Question 36

Correct
Mark 1.00 out of 1.00
Flag question

Question text

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

Select one:

Feedback