1、 CHAPTER TENPRICE: THE ONLINE VALUEMultiple ChoiceBroadly speaking, the definition of price includes all of the following values except _. moneytimephysical costpsychic cost (c; Easy; LO1; Analytic Skills) _ refers to the idea that both buyers and sellers can view all competitive prices for items so

2、ld online.Price transparencyDynamic pricingOnline pricingNone of the above(a; Easy; LO1; Analytic Skills)The phenomenon that some people may actually pay a higher price for auctioned products than they would pay an online retailer is known as _.seller controlbuyer controldynamic pricingthe winners c

3、urse(d; Moderate; LO2; Analytic Skills)_ power is based largely on the huge quantity of information and product availability on the web.BuyerSellerMarketAll of the above(a; Easy; LO2; Analytic Skills)_ is the most common profit-oriented objective for pricing.Competition-based pricing Dynamic pricing

4、Current profit maximizationSegmented pricing(c; Difficult; LO3; Analytic Skills)Which of the following attributes of the internet puts upward pressure on prices?online customer serviceaffiliate programscustomer acquisition costsall of the above(d; Moderate; LO4; Analytic Skills)Which of the followin

5、g attributes of the internet puts downward pressure on prices?distributionprice dispersion self-service order processing all of the above(c; Difficult; LO4; Analytic Skills)All of the following are types of markets recognized by economists except _.pure competitionoligopolistic monopolymonopolistic

6、competitionoligopolistic competition(b; Moderate; LO4; Analytic Skills)A market is truly efficient when customers have equal access to information about _.productspricesdistributionall of the above(d; Easy; LO4; Analytic Skills)_ refers to the variability of purchase behavior with changes in price.P

7、rice elasticityPrice transparencyDynamic pricingCompetition-based pricing(a; Moderate; LO1; Analytic Skills)Which of the following are possible explanations of online price dispersion?delivery optionstime-sensitive shopping habitsswitching costsall of the above(d; Moderate; LO4; Analytic Skills)In g

8、eneral, marketers can employ which of the following types of pricing strategies both online and offline _.fixed pricingauction pricingdynamic pricingall of the above(d; Easy; LO3; Analytic Skills)_ and _ are types of fixed pricing strategies.Price leadership; promotional pricingPrice leadership; neg

9、otiationPromotional pricing; segmented pricingNegotiation; segmented pricing(a; Moderate; LO1; Analytic Skills)_ pricing uses the internet properties for mass customization, automatically devising pricing based on order size and timing, demand and supply levels, and other preset decision factors.Pro

10、motionalAuctionSegmentedNegotiated(c; Difficult; LO1; Analytic Skills)In order to avoid upsetting customers who learn they are getting different prices than their neighbors, e-marketers should use customer-accepted reasons. These reasons may include _.giving discounts to new customersgiving discount

11、s to loyal customersadjusting shipping fees due to outlying locationsall of the above(d; Moderate; LO3; Analytic Skills)When using _ segment pricing, a company may set different prices when selling a product in different states or regions. valuedistancegeographicmarket(c; Easy; LO3; Analytic Skills)

12、_ suggests that 80% of a firms business typically comes from the top 20% of customers.The Pareto principleCustomer loyaltyValue segmentingDynamic pricing(a; Easy; LO3; Analytic Skills)Which of the following customer group is of least value to a seller?A+ABC(d; Moderate; LO3; Analytic Skills)Buyer po

13、wer on the internet is the result of all the following except _.product availabilityproduct costslarge amount of informationwillingness of sellers to negotiate(b; Moderate; LO2; Analytic Skills)Companies select market-oriented pricing on the internet to _.maximize profitsgrow market shareincrease re

14、turn on investment (ROI)all of the above(b; Moderate; LO1; Analytic Skills)True/FalseTodays buyer must be quite sophisticated to understand even the simple dollar cost of a product.TrueFalse(a; Moderate; LO2; Analytic Skills)The sellers perspective on pricing includes both internal and external fact

15、ors affecting pricing levels.TrueFalse(a; Difficult; LO3; Analytic Skills)The objective of competition-based pricing is to price according to the companys costs or demand.TrueFalse(b; Moderate; LO1; Analytic Skills)Price dispersion is the observed spread between the highest and lowest price for a gi

16、ven product.TrueFalse(a; Easy; LO4; Analytic Skills)The internet is currently an efficient market.TrueFalse(b; Easy; LO4; Analytic Skills)Menu pricing is the strategy of offering different prices to different customers.True False(b; Difficult; LO1; Analytic Skills)In terms of dynamic pricing, negoti

17、ation is most often initiated by the seller.TrueFalse(b; Difficult; LO1; Analytic Skills)With value segment pricing the seller recognizes that not all customers provide equal value to the firm.TrueFalse(a; Moderate; LO3; Analytic Skills)Giving high-value customers the first shot at discounts will re

18、inforce their loyalty.TrueFalse(a; Easy; LO5; Analytic Skills)In a “flash sale,” a site member may be eligible to purchase a product at a deep discount for a limited time. TrueFalse(a; Moderate; LO1; Analytic Skills)Online sellers are less willing to negotiate than offline sellers, giving more power

19、 to seller.TrueFalse(b; Easy; LO1; Analytic Skills)A key issue for companies who have an online and an offline presence is how to coordinate pricing between the two channels.TrueFalse(b; Easy; LO5; Analytic Skills) Essay QuestionsIn the narrowest sense, price is the amount of money charged for a pro

20、duct. However, a much broader definition of price may be more accurate. What factors are accounted for in a broader definition of price? Give real life examples of each.Price is sum of all values both monetary and non-monetary. It may include factors/values such as money, time, energy, and psychic c

21、ost.Monetary cost - what you pay at the grocery for milkTime - Buying Airline tickets on the net can take much more time, than dealing with an agentEnergy - Like time finding something on e-Bay can take a lot of energy Psychic Cos t- Buying clothing on the internet can involve high psychic cost. Wha

22、t looks good in a picture alone, or on a model, may not look or feel good on you.(Moderate; LO1; Analytic Skills)There are several attributes of the internet that may allow for cost savings online. Define and give examples of at least four.Convenience- Buy at any time and any placeSpeed of the Net-

23、Typical transaction is very quick, once the buyer has made a decisionSelf Service Saves time and money. Customer performs job of sales rep and can access information across the internetOne Stop Shopping Saves time and convenience.Integration Saves time, Web Portals act as malls to pull product assor

24、tments togetherAutomation Saves energy, keep track of previous purchases, automatic bidding(Difficult; LO5; Analytic Skills)Define and distinguish between the four types of markets recognized by economists. What kind of market is the internet at this time?Pure Competition Many buyers and sellers sel

25、ling a non-differentiated product like wheat or corn. Since it is a commodity with little product differentiation, marketers spend little time on marketing.Monopolistic competition Many buyers and sellers who trade over a range of prices, because sellers can differentiate product and their offers.Ol

26、igopolistic competition A few sellers who are highly price sensitive to the competition.Pure Monopoly One seller with price typically regulated by governmentCurrently most companies on the internet operate in a monopolistic competition environment.(Moderate; LO3; Analytic Skills)What factors might e

27、xplain the wide price dispersion on the internet? In your opinion, which of these factors has the biggest effect on the spread between online prices?BrandingDynamic Pricing of goods onlineDelivery options impact pricingTime Sensitive BuyersPerceived Product DifferentiationSwitching CostsShopping AgentsThe biggest factor on the internet currently i