Market-based pricing involves:
Answer(s): C
Market-based pricing involves basing prices on the product's perceived value rather than on the seller's cost Jon price variables in the marketing mix augment the perceived value. For example, a cup of coffee may have a higher price at an expensive restaurant than at a fast food outlet.
Value engineering is:
Answer(s): D
Value engineering is a means of reaching targeted cost levels. It is a systematic approach to assessing all aspects of the value chain cost buildup for a product: R&D, design of products, design of processes, production, marketing, distribution, and customer service_ The purpose is to minimize costs without sacrificing customer satisfaction.
Company A is a producer of citrus flavored dessert products. Its most popular product is its key, lime pies, which are made with many fine ingredients, including egg yolks. Company A also sells the egg whites that are left over from its production process. These egg whites are sold at any price that is greater than the cost of storing and delivering them.What is the pricing of the egg whites?
Answer(s): A
By-product pricing usually sots prices at any amount in excess of storing and delivering byproducts.Such prices allow the seller to reduce the costs and therefore the prices of the main products.
Which of the following is a definition of predatory pricing?
Predatory pricing is the practice of pricing products below cost to destroy competitors. A price is predatory if it is below an appropriate measure of costs, and the seller has a reasonable prospect of recovering its losses in the future through higher prices or greater market share.
Prices vary directly with capacity usage under:
Answer(s): B
Under peak-load pricing, prices vary directly with capacity usage. Thus, when idle capacity is available, that is, when demand falls, the price of a product or service tends to be higher given a peak-load pricing approach.
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