For a Homogeneous Shopping Product, a Marketing Manager Should

question 338

Multiple Choice

For a homogeneous shopping product, a marketing manager should

• A) provide enough exposure to facilitate price comparison.
• B) understand that price sensitivity is likely to be low.
• C) recognize that consumers see a lot of differences across alternatives.
• D) realize that consumers usually pay little attention to price.
• E) know that consumer purchases are typically unplanned and bought quickly.

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Definitions:

Experience-curve Pricing

A pricing strategy that takes into account the reductions in unit costs as cumulative volume increases, due to gained efficiency and experience.

Experience-curve Pricing

A pricing strategy that lowers the cost of a product over time as the production processes become more efficient with experience.

Experience-curve Pricing

A pricing strategy based on the concept that costs decline and efficiency improves over time with accumulated production experience.

Experience-curve Pricing

A pricing strategy based on the idea that costs per unit decrease with increasing scale of production due to gained efficiencies and experience.