An important first step in informing customers of a price increase due to rising costs of manufacturing and to ensure that customers perceive the price change as fair and reasonable, a company should _____.
Answer
Selected Answer: communicate in writing to each customer the reason for the price increase and aligning cost with the increase
Correct Answer: communicate in writing to each customer the reason for the price increase and aligning cost with the increase
Question 2
2 out of 2 points
Correct
_____ allows high initial pricing when profits from selling to fewer price insensitive customers exceed those of selling to a larger market share at lower prices.
Answer
Selected Answer:
Skim pricing
Correct Answer:
Skim pricing
Question 3
2 out of 2 points
Correct
_____ is a low cost method of testing new prices on a portion of the market and is particularly useful where comparisons can be made between the test market and the control market.
Answer
Selected Answer:
Price experimentation
Correct Answer:
Price experimentation
Question 4
2 out of 2 points
Correct
_____ sets initial prices for a target segment that are lower than the perceived value.
Answer
Selected Answer:
Penetration pricing
Correct Answer:
Penetration pricing
Question 5
2 out of 2 points
Correct
_____ are used to analyze systematically the potential effects of competitor reactions and customer responses to a price change and provide information about risk and trade-offs of price increases.
Answer
Selected Answer:
Simulations
Correct Answer:
Simulations
Question 6
2 out of 2 points
Correct
When new prices are communicated to the market, prices need to be _____.
Answer
Selected Answer: perceived as fair even though they may be higher than competitors
Correct Answer: perceived as fair even though they may be higher than