Chapter 9 Pricing

Which of the following are the major pricing strategies?

• Customer/Market-Based Pricing

• Competition-Based Pricing

• Cost-Based Pricing

• Dynamic Pricing

Which pricing strategy uses the

buyers’ perceptions of value rather than seller’s cost?

• Customer Value-Based Pricing

• Competition-Based Pricing

• Cost-Based Pricing

• Dynamic Pricing

Which pricing strategy involves setting prices based on the costs for producing, distributing and selling the product plus a fair rate of return for its effort and risk?

• Customer Value-Based Pricing

• Competition-Based Pricing

• Cost-Based Pricing

• Dynamic Pricing

Which pricing strategy involves setting prices based on competitors’ strategies, costs, prices and market offerings?

• Customer Value-Based Pricing

• Competition-Based Pricing

• Cost-Based Pricing

• Dynamic Pricing

Which of the following market consists of only a few large sellers and each seller is alert and responsive to competitors’ pricing strategies and marketing moves?

• Pure competition market

• Monopolistically competitive market

• Oligopolistic market

• Monopoly

Which of the following market is dominated by one seller?

• Pure competition market

• Monopolistically competitive market

• Oligopolistic market

• Monopoly

John runs a plumbing business. When determining his prices he charges $100/hour labour plus parts. He has worked out that per job $100 is enough to cover his expenses such as travel and fuel as well as making $70 profit. This method would be referred to as?

• Competition based pricing.

• Cost plus method.

• Market based pricing.

Annie runs a clothing store. The new jumpers she has on the shelves cost her $25 each to get in stock. She noticed the other clothing store in town sells a similar jumper for $45 so she decides to price hers at $40. This pricing method is?

• Cost Plus Method

• Market/Customer Based Pricing.

• Competition Based Pricing.

Steve runs a shoe store in town. He has had his Nike runners on the shelf for $120. He's noticed they're not selling. So he decides to lower the price to see if customers would buy them if they are priced cheaper. This method is referred to as?

• Market based pricing.

• Competition based pricing.

• Cost plus method.

• Monopoly.