Pricing Decision - Toyota

Toyota

100

1. Who is the Founder of Toyota Motor Corporation?

Kiichiro Toyoda

150

2. Which country is Toyota headquartered in?

Japan

200

3. What is the name of Toyota's luxury vehicle division?

Lexus

250

4. When was Toyota Motor Corporation founded?

1937

300

5. What is the name of Toyota's best-selling car model?

Toyota Corolla

Consumer Psychology and Pricing

100

1. What do you call prices that consumers use as a benchmark for evaluating the fairness of a product's price?

Reference Price

150

2. What principle companies use of specific numbers, such as .99 or .95, at the end of a price to make the product seem more affordable?

Price Ending

200

3. What is the principle that refers to the idea that consumers often assume that higher-priced products are of higher quality?

Price-quality inferences

Price-Adaptation Strategies

100

1. What do you call the temporary price reductions offered to customers to encourage purchases? 

Clue: This is typically offered to customers who purchase larger quantities

Price discounts and allowances

150

2. What do you call the practice of charging different prices for products or services based on geographic location?

Geographical pricing

200

3. What is the tactics used by companies to create a sense of urgency or excitement around a product or service by temporarily reducing its price?

Promotional pricing

250

4. What business technique is used to charge different consumers varying prices for the same good or service?

Differentiated pricing

Setting the Price

100

Companies pursue ____________ as their major pricing objective if they are plagued with overcapacity, intense competition, or changing consumer wants.

Survival

150

What type of cost that do not vary with production level or sales revenue?

Fixed Cost

200

What is the pricing strategy where a company sets its prices based on what its competitors are charging for similar products or services?

Going Rate Pricing

250

What is the pricing strategy that Toyota used when it introduced the first-generation Toyota Prius in 1997?

Skimming Pricing Strategy

300

_____________ is a pricing technique that add a standard markup to the product’s cost.

Markup Pricing

General

100

1. What is the Marketing Mix element that produces revenue?

Price

150

True/False

If demand is elastic, sellers will consider increasing the price to produce more total revenue.

False (lower the price)