Pricing Is a Highly Visible Component of a Firm's Marketing

question 118

Multiple Choice

Pricing is a highly visible component of a firm's marketing mix and an easy tool for obtaining a differential advantage over competitors. However, when competitors continually undercut each other to gain that advantage, it can lead to a price war that damages all companies involved. When firms have identical or very similar products and price information is readily available - for example, Coca-Cola and Pepsi - a common pricing approach to avoid price wars is:

• A) competitive-parity pricing.
• B) market-based pricing.
• C) commodity pricing.
• D) bargain pricing.

Understand methods for managing service inconsistencies and improving service delivery.

Identify the challenges of idle production capacity and strategies for managing demand fluctuations.

Appreciate the continuum of offerings between tangible products and intangible services.

Recognize the cost structures associated with service delivery, including inventory carrying costs.

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Definitions:

Red Triangle

An area notorious for its frequency of shark attacks; without context, it could also simply refer to a geometric shape in a specific color.

Red Triangle

A region known for its high frequency of earthquakes and volcanic activity, often a specific geographic area noted for a particular type of natural hazard.

Red Triangle

A warning sign or symbol, often used in various contexts to signify danger or caution.

Red Triangle

A colloquially named region in the Pacific Ocean off the coast of Northern California known for a high number of shark attacks.