Motorola introduced a new personal communicator priced at a significant premium over competing models. Initially, Motorola will concentrate on the business user but the firm plans to reduce the price later and capture a share of the consumer market. This policy of beginning with a high price and then moving to a lower price is referred to as:
a. product differentiation.
b. market segmentation.
c. price administration.
d. time segmentation.
e. life cycle pricing.
Answer: D
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B2B Chapter 12
- _____ involves a formal invitation to potential suppliers to submit written, sealed bids.
- Which of the following are questions that must be addressed when determining responses to a competitor's threat?
- Which of the following are reasons why followers into a market often find lower costs than the pioneer firm?
- Which of the following are useful to business marketers trying to gauge competitive responses to pricing?
- Examples of typical add-on benefits include:
- _____ are those attributes that are not typically required but that can ultimately lead to a supplier being selected by a customer over other qualified suppliers.
- ____ represents a business customer's overall assessment of the utility of a relationship with a supplier based on the benefits received and sacrifices made.
- ____ features a design-to-cost philosophy that begins by examining market conditions.
- A skimming strategy is appropriate when:
- ____ refers to the rate of percentage change in quantity demanded attributable to change in price.
- ____ costs include financing, storage, and inspection costs.
- If competitors are likely to continue to pursue price cutting, the best strategy for the defender is to:
- General plant overhead is an example of _____ costs.
- Which of the following statements regarding competitive threats is incorrect?
- _____ are those that support a number of activities that cannot be objectively assigned to a product on the basis of a direct physical relationship.
- The buyer's price sensitivity increases to the degree that:
- Since higher costs are incurred in providing higher levels of performance on one or more of the attributes, the strategists should assess the:
- Examples of pricing objectives include:
- Pertinent considerations for pricing industrial products or services include:
- The successful implementation of value-based strategies requires close coordination between the _____and _____ units in the firm.
- In hypercompetitive environments,
- Pine River Equipment has developed a distinctly new product that offers considerable promise. By exploiting the experience effect, management believes that there are opportunities for a substantial reduction in production costs as volume expands. While the market is quite large, there is a strong threat of imminent competition. The firm should likely use:
- Which of the following statements concerning target costing is(are) accurate?
- Before preparing a bid for any potential contract, the industrial firm should first:
- The competitive bidding approach that may include deliberations with suppliers throughout the bidding process is referred to as: