MARKETING CH 14

3 September 2023
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10 test answers

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question
Which of the pricing orientations discussed in the text does Planet Fitness most closely pursue?
answer
sales-oriented
question
Suppose that a Planet Fitness studio has fixed expenses of $7500 per month and variable expenses of $4.99 per member per month. How many PF BlackCard members (described in the case) would the studio need each month to break even?
answer
500
question
Based on information in the case, what level of competition does the fitness center market represent?
answer
monopolistic competition
question
As the case explains, Planet Fitness can keep prices lower in part because its members make fewer visits per week to the gym, thus reducing
answer
variable costs.
question
Suppose that a new fitness company decided to copy the Planet Fitness strategy as described in the case, including matching its prices. This new company would be demonstrating what type of pricing strategy?
answer
competitive parity
question
One reason Taco Bell raised its prices was the result of an increase in
answer
costs.
question
The quick service restaurant (QSR) market is considered a(n)
answer
monopolistic competition
question
Taco Bell's predominant pricing strategy is
answer
customer-oriented
question
Giving consumers larger quantities at a low price would help Taco Bell regain
answer
a competitive advantage.
question
According to the typical demand curve, lower prices will result in _____ being sold.
answer
larger quantitieS