La Consolacion University Philippines

Catmon, City of Malolos

FINAL EXAMINATION
REFERENCE
PRICING

Suggested Retail Price - Denotes the price that a consumer product is expected to be sold at over the counter and in stores.
Two elements in particular seriously altered merchandisers’ approach to pricing:
a. Mass Production - An element led to wider access to cheap goods that are sold in bulk, as made possible
by factory-based processes.
b. Transportation – The emergence of long range mechanical transportation system would provide
merchants with access to a far wider variety of goods than was ever before possible.
Exceptions to the general rule of demand that are inversely reacting to price:

• Veblen goods are goods that become more sought after the higher their prices become, often in the case of
high-end luxury goods
• Giffen Goods - end up being preferred despite its price increase because substitute goods’ prices are also
rising as well, to the point that the former becomes more attractive than the substitutes.
Inferior Goods – Goods that are low in quality or being perceived by the consumer to have a low quality.
Example: Suppose that the usual price of high quality shoes is not less than 7,000. Xiexieni Store sells shoes which
price is not more than 150 pesos. The market may perceive it as Inferior goods.

*Note:
Take this as your reference to answer those questions under “Pricing”. Expect questions to be almost exactly like this.
Take your quizzes and notes as your reviewer. Expect tricky and situational questions.
Types of exam (Multiple Choice & Computation of Brand Equity) Formula is given.

Prepared by:

Princess Camille T. Dela Peña

(Subject Teacher)