SELF TEST #20: Setting Objectives and Pricing Guidelines
Before Last Look develops in a marketplace, what might we expect to see as prices for similar products from one competitor to the next?
How do we assess the likelihood that a competitor will follow us in a price change, either up or down?
How do we explain price premiums in a market?
What is a Peer?
What is a Price Shaver?
What is the difference between a Price Shaver and a Price Leader?
What prices do Peers receive compared to one another?
What is a Leader's Trap?
Explain Last Look.
How does the competitor's knowledge of our price move affect our pricing plans?
What effects does Last Look have on a marketplace?
Where do lower prices originate in Hostile markets, where prices and returns are already low?
What determines a competitor's capacity to counteract our price change?
What are Price Gaps from one competitor to another before and after Last Look?
In a Hostile marketplace, who is responsible for the majority of price declines?
What does it mean if a competitor has more Positive Volatility on price than average in the industry?
What are the typical Defensive pricing guidelines?
What are the typical Offensive pricing guidelines?
What objectives would any pricing policy have?
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