Customers interpret and respond to prices in different ways, depending on the type of product, perceptions of product quality, and the customers ability to judge product quality independent of the price. Because customers lack the ability to judge product quality, they sometimes used the price of the product as an indicator of product quality. Thus, the price$-$quality relationship can influence the purchase of some products. For each of the following, indicate whether customers rely heavily, moderately, or hardly at all on the price to judge the quality of a product.

Airfare in first class on a flight to Japan

Kidney stone removal

Oatmeal $($for breakfast$)$

Netflix

Toothpaste

Bird food

Propane for a gas grill

E$85$ gasoline

A new$/$used vehicle after you totaled your current vehicle in an accident

Hotel rooms at an on$-$property Disney World resort

Diamonds

Price of a movie on a first date

Veterinarian services for a sick pet

Price skimming and penetration pricing are strategies that are commonly used to set the base price of a new product. Which pricing strategy is more appropriate for the following products? Explain.

Long airline flights between Chicago and London, England

MacBook

A garden hose with a lifetime warranty

A timeshare at a Florida Keys resort that just remodeled and opened

Price lining is used to set a limited number of prices for selected lines of merchandise. Visit a few local retail stores to find examples of price lining. For what types of products and stores is this practice most common? For what types of products and stores is price lining not typical or feasible?

Professional pricing is used by people who have great skill in a particular field, such as doctors, lawyers, and business consultants. Find examples $($advertisements$,$ personal contacts$)$ that reflect a professional pricing policy. How is the price established? Are there any restrictions on the services performed at that price?

Organizations often use multiple pricing objectives. Identify an organization that uses several pricing objectives, and discuss how this approach influences the companys marketing mix decisions. Are some objectives oriented toward the short term and others toward the long term? How does the marketing environment influence these objectives?