Match the following:List - I List - II (a) Customer-segment pricing (i) Pricing products differently but not proportionately to their costs (b) Product-form pricing (ii) Pricing products differently even though the cost of offering at that arena is the same (c) Location pricing (iii) Pricing differently even though the products are the same (d) Time pricing (iv) Pricing differently for the different seasons
(a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)
These are the forms of discriminatory pricing in Kotler's scheme, where a firm charges different prices to different buyers, versions, places or times. Each is matched to the basis on which its price differs.
Customer-segment pricing charges different customer groups different prices for the same product - so it is 'pricing differently even though the products are the same', giving (a)-(iii). Product-form pricing prices different versions of a product differently, but not in proportion to their costs - the price gap between forms exceeds the cost gap - giving (b)-(i). Location pricing charges different prices at different places even though the cost of offering the product is the same at each location - as with different-priced theatre seats - giving (c)-(ii). Time pricing varies the price by season, day or hour, giving (d)-(iv).
Putting these together gives (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv), which is the second code. The distinguishing question in each case is what dimension the price varies with while cost or product is held constant.
Hence the correct match is (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv).
Similar Questions
Match the items of List - I with that of List - II and suggest the correct code :
List - I (Pricing Strategies) List - II (Explanations) (a) Customary pricing (i) Ending a price with 99 paise (b) Skimming (ii) pricing a product based on perceived expectations of customers (c) Penetration pricing (iii) Setting a high price which gradually reduces as competitors enter the market (d) Psychological pricing (iv) Offering at a low price for a new product during its initial offering Code :
Find the most appropriate sequence of life-cycle of price for a product, from the initial stage to the mature stage.
After determining its pricing objectives, what is the next logical step a company should take in setting its pricing policy ?
The practice of selling below cost, with an intention to destroying the competitor is referred to as :
Match the items of the List-I with those of the List-II and suggest the correct code from the following:
List-I List-II i. Loss Leader a. Locational price differentials ii. Unchanged Pricing b. Products with high initial demands iii. Basing Point Pricing c. Product line pricing iv. Skimming Pricing d. Oligopoly pricing Codes:
Which one of the following will be the appropriate pricing strategy for a new product expecting an expanding market?
Temporarily reducing prices to increase short-run sales is an example of which one of the following?
Select the correct sequence of steps in setting a pricing policy:
(a) Determining Demand
(b) Analysing competitors' costs, prices and offers
(c) Selecting the Final Price
(d) Selecting the Pricing Objective
(e) Estimating costs
(f) Selecting a pricing method
Codes:
The price setting method most closely corresponding to the concept of product positioning is:
Match the List-I with List-II
LIST I
Pricing situationLIST II
DescriptionA. Product line Pricing I. Pricing optional or accessory products sold with the main product B. Optional product pricing II. Setting prices across an entire product line C. Captive product Pricing III. Pricing low value by product to get rid of or make money on them. D. By-Product Pricing IV. Pricing products that must be used with the main product. Choose the correct answer from the options given below:
Important Questions from Pricing decisions
Pricing practice of setting a price target and then developing a product that would allow the firm to maximise total profit at that price is called:
Which of the following is the characteristic of price?
In which of the following price adjustment strategies. a company reduces prices to reward customer responses such as volume purchases, paying early or promoting the product?
The consumer's price sensitivity is / are influenced by
A. Who bears the cost
B. What percentage of total expenditure does the product represent
C. Who bears the cost and type of retailer from where customer purchases
D. Consumption of product by the customer
E. Knowledge about the product
Choose the most appropriate answer from the options given below:
- Which of the following are the informal pricing methods ?
I. Cost plus
II. Competitive
III. Rate of return
IV. Trial and error
Codes :
