Homework answers / question archive / Chapter 10 Homework 1)After setting the pricing objective, the next step in Amy's price-setting process is to Top of Form monitor the effectiveness of a set price

Chapter 10 Homework 1)After setting the pricing objective, the next step in Amy's price-setting process is to Top of Form monitor the effectiveness of a set price

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Chapter 10 Homework

1)After setting the pricing objective, the next step in Amy's price-setting process is to

monitor the effectiveness of a set price.

evaluate demand.

determine the costs.

analyze competitors' pricing.

choose a price.

2Amy typically uses ________, where a certain amount is added to the cost of a product to determine the price of most items in her store.

prestige pricing

price bundling

markup pricing

odd pricing

seasonal discounts

3The handcrafted items made at Amy's Candy Bar are typically priced higher for all of the following reasons except

increased freshness.

lower promotional costs.

pure ingredients.

labor costs.

higher quality products.

4The highest demand periods for Amy's Candy Bar include all of the following except

Thanksgiving.

Halloween.

Christmas.

July 4th, Independence Day.

Valentine's Day.

5All of the following should be considered when setting the final price except

what customers are willing to pay.

mode of transportation for ingredients.

costs.

pricing objective.

demand.

6Match each of your decisions to the appropriate step in the price-setting process.

1. Evaluate demand.

 

2. Monitor and evaluate the effectiveness of the price.

 

3. Choose a price.

 

4. Determine the costs.

 

5. Analyze the competitive price environment.

 

6. Define the pricing objectives.

7For each market segment select the pricing tactic that would be most appealing.

 

1. "Like" expensive items, including luxury cars and exotic vacations

 

2. High-paying job, prefers ease of purchase, and prefers value

 

3. Very tech-savvy and highly educated

 

4. Lower income, looking for value

 

5. "Fan" of StubHub and several online ticket retailers where prices change based on demand

 

6. "Followers" of multiple retailers who offer online coupons and special price reductions

 

7. "Followers" and "fans" of luxury brands, including Rolex, Starbucks, and Mercedes

 

8. Fans of local cable company where they "like" the package of tv, Internet, and home phone

 

8Select the law that determines if the strategy is legal or illegal.

1. WCG agrees with its cell plan competitors to raise prices for all customers.

 

2. WCG colludes with another company to stop offering family plan discounts.

 

3. WCG decides to advertise a new plan that is 75 percent off the regular plan, even though it is only 20 percent less.

 

4. WCG promises retail consumers a "wholesale" rate, even though it is the same price as always.

 

5. WCG wants to attract more women to its plans and starts offering female consumers 30 percent off their bill.

 

6. WCG offers a discount to teenage males in an effort to get customers from its more trendy competitor.

9 Select the appropriate pricing tactic for each priority as set by the owner of Southfork Tablets.

 

1. Pricing should reflect the image that Southfork makes a superior tablet product.

 

2. Offer specials during the Christmas holiday season to increase sales.

 

3. Make 25 percent profit above total costs for the S-2 tablet.

 

4. Package the S-2 tablet with an S-mini device and additional software to increase margins on each product.

 

5. Make sure the S-2 tablet is the highest-priced product in the market.

 

6. Develop special pricing for the summer months, when tablet sales typically decline.

 

7. Combine product offerings and pricing to reduce advertising costs for the firm.

 

8. Use the easiest pricing tactic possible to reduce confusion.