NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JANUARY 2021 EXAMINATION

COURSE CODE: MKT 829

COURSE TITLE: PRICING POLICY

CREDIT UNIT: 3

INSTRUCTION: 1. Indicate your Matriculation Number clearly 2. Attempt question one (1) and any other three (3) questions; four questions in all 3. Question one (1) is compulsory and carries 25 marks, while the other questions carry 15 marks each. 4. Present all your points in a coherent and orderly Manner

TIME ALLOWED: 2 Hours

Question 1

Write an illustrative note, with clear examples, on each of the following pricing strategies:

(a) Bait pricing

(b) Reference pricing

(c) Odd-even pricing

(d) Customary pricing

(e) Captive pricing

Question 2

(a) Discuss, with clear illustrations, the four common examples of pricing objective in firms.

(b) What is cost-oriented pricing techniques in marketing? Identify and explain, with an example each, the three variants of this technique. 5marks each = 25 marks 7marks 8marks

Question 3

(a) Identify, and explain the relationship between the two key variables that underscore price elasticity equation.

(b) How does this relationship between the magnitude of change in demand and percentage change in price affect revenue?

Question 4

Succinctly describe Product line pricing and its sub-components. For each of the three components, you are required to provide at least one example.

Question 5

(a) A product is not just the tangible element that we see and touch. Identify and critically examine the key elements of a complete product.

(b) What is market segmentation and what are the elementary bases for segmenting a local market? Give an example for each. 8marks 7marks 15marks 7marks 8marks