LSUS Chen- MBA 706 Module 4
Questions and Answers 100%
Accurate
Cost reductions - ANSWER-Products are modified to provide similar
performance but at a lower cost:
ex: iphone XS vs Iphone XR
Price - ANSWER-Pricing decisions are hard to make due to the complexity of
interaction among consumers, competitors, and the distribution network:
and decisions are made quickly without testing
- usually there is a large and aggressive company who determines the prices
from the industry, and almost all other companies are obliged to follow,
except a few niche companies
Pricing strategy - ANSWER-Price takers:
- follow the prices set by other firms
Price makers:
, - Possess the market power to determine the levels and patterns of price
that others follow
Meeting or following competition: - ANSWER-Follow competitor's prices until
establishing a good reputation
Single segment concentration - ANSWER-- firms focus on a single segment
- very high-risk strategy, but usually works well for small companies
- this type of concentrated marketing efforts can develop a strong market
position ( brand image of specialist)
Survival - ANSWER-Prices are reduced to below cost in order to maintain a
sufficient cash flow
Maintenance and improvement of market position - ANSWER-Prices are set to
increase market share and minimize the possibility of price wars
Pricing to reflect product differentiation - ANSWER-Prices are set differently
for each market segment and to create different perceptions of their
product's value
Questions and Answers 100%
Accurate
Cost reductions - ANSWER-Products are modified to provide similar
performance but at a lower cost:
ex: iphone XS vs Iphone XR
Price - ANSWER-Pricing decisions are hard to make due to the complexity of
interaction among consumers, competitors, and the distribution network:
and decisions are made quickly without testing
- usually there is a large and aggressive company who determines the prices
from the industry, and almost all other companies are obliged to follow,
except a few niche companies
Pricing strategy - ANSWER-Price takers:
- follow the prices set by other firms
Price makers:
, - Possess the market power to determine the levels and patterns of price
that others follow
Meeting or following competition: - ANSWER-Follow competitor's prices until
establishing a good reputation
Single segment concentration - ANSWER-- firms focus on a single segment
- very high-risk strategy, but usually works well for small companies
- this type of concentrated marketing efforts can develop a strong market
position ( brand image of specialist)
Survival - ANSWER-Prices are reduced to below cost in order to maintain a
sufficient cash flow
Maintenance and improvement of market position - ANSWER-Prices are set to
increase market share and minimize the possibility of price wars
Pricing to reflect product differentiation - ANSWER-Prices are set differently
for each market segment and to create different perceptions of their
product's value
