Marketing 291 Final Exam Miami University questions with correct answers

Skimming Pricing Answer -Firm introduces a new or innovative product and sets the highest initial price that customers who really desire the product are willing to pay. -Customers are not very price sensitive -Prices are lowered once they are satisfied to attract new customers Penetration Pricing Answer Set low initial price on new product for immediate appeal to the mass market Target Pricing Answer Manufacturer deliberately adjusts the features of a product to achieve this Pricing goods according to what the customer is willing to pay Yield Management Pricing Answer The charging of different prices to maximize revenue for a set amount of capacity at any given time. Cost-plus-fixed-fee Pricing Answer Sum the total unit cost of providing a product or service and add a specific amount to the cost in order to arrive at the price, supplier is reimbursed for all costs however their profit is based on a fixed fee Cost-plus-percentage-of-cost Pricing Answer A fixed percentage is added to the total cost