Marketing mix-price

Match the scenarios to the most appropriate pricing method A computer manufacturer sets a discount price when it launches a new chocolate bar Penetration pricing A coffee shop bases the price of a cup of coffee on the cost of producing the coffee Cost-plus pricing A computer game company sets a high price when a product is first launched Price skimming A petrol retailer tries to match the price of other petrol retailers in the area Competitive pricing A computer retailer discounts the price of its laptops and PCs to sell more accessories Promotional pricing When the price of most products increases, the demand for these products will be likely to: fall increase stay the same increase and then remain constant A firm is most likely to adopt a penetration strategy for a product when: sales are rapidly increasing competitors have just raised their prices the objective is to achieve a high market share the firm wants to establish a luxury and exclusive image for the product A chocolate manufacturer uses cost-plus pricing for its products. The cost of making one thousand bars of one brand is $500. The firm wants add a profit mark-up of 50% per bar. The final selling price will be: $1 50 cents $3 75 cents A firm is about to launch a new brand of clothing into a market segment with very few competitors. It aims to create a luxury, quality image for the clothes. In setting the prices it is most likely to use: Penetration pricing Price skimming Competitive pricing Cost-plus pricing A furniture retailer has several chairs that have been in stock for over one year. To sell these products quickly, it is most likely to use: Promotional pricing Price skimming Psychological pricing Cost-plus pricing The pricing decision made by a business for one of its products will influence all of the following except: sales of the product sales revenue profit made by the business cost of producing the product Which one of the following products is most likely to have a very low price elasticity of demand (demand is not very responsive to changes in price)? A brand of sweets Salt Starbucks coffee Artificial flowers Identify two factors a company should take into account when determining its selling price. Name one product that could have price inelastic demand. Name one product that could have price elastic demand. Sort out the stages of a Product Life Cycle with suitable Pricing Strategies. Product Life Cycle Introduction Growth Maturity Decline Pricing Strategy Price Skimming Cost-plus Pricing Competitive Pricing Promotional Pricing