Target-return pricing

Value pricing

Price discrimination

When consumers examine products, they often compare an observed price to an internal price they remember. This is known as a(n) ________ price.

A. markup
B. reference
C. market-skimming
D. accumulated
E. target

While shopping at the mall, Jane was asked by one of the sales representatives at the cosmetics counter to try out a new lipstick(口红、唇膏) that her company was test marketing. The company representative asks her how much she would be willing to pay for the lipstick. After trying it out, Jane is of the opinion that $5 is just the right price for it. What type of a reference price is Jane using?

A. usual discounted price
B. fair price
C. maximum retail price
D. last price paid
E. historical competitor price

Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand. What kind of pricing is the company depending on?

A. going-rate pricing
B. image pricing
C. market-skimming pricing
D. target pricing
E. markup pricing

Which of the following is the first step in setting a pricing policy?

A. selecting a pricing method
B. selecting the pricing objective
C. determining demand
D. estimating cost
E. analyzing competitors' costs, prices, and offers

After determining its pricing objectives, what is the next logical step a firm should take in setting its pricing policy?

A. It should analyze its competitors' costs, prices, and offers.
B. It should select its pricing method.
C. It should select its final price.
D. It should determine the demand for its product.
E. It should estimate the cost of its product.

A firm that is plagued with overcapacity, intense competition, or changing consumer desires would do better if it pursues ________ as its major objective.

A. market skimming
B. product-quality leadership
C. survival
D. profit maximization
E. market penetration

After estimating the demand and costs associated with alternative prices, a company has chosen to price its product in such a way that it gains the highest rate of return on its investment. The company is looking to ________.

A. maximize market share
B. skim the market
C. become a product-quality leader
D. survive in the market
E. maximize current profit