CPM Value-Based Pricing & Customer Segmentation Flashcards
6 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CPM Value-Based Pricing & Customer Segmentation flashcards as text
Which method estimates the maximum price a customer will pay by measuring attribute trade-offs?
Answer: Conjoint analysis
Conjoint analysis asks respondents to choose among product profiles, revealing implicit willingness-to-pay for each attribute.
In value-based pricing, 'differentiation value' refers to:
Answer: The monetary worth of features superior to the next best alternative
Differentiation value is the positive (or negative) dollar value your product delivers beyond what the next best alternative offers.
A company using 'good-better-best' product architecture primarily aims to:
Answer: Segment customers by value perception and maximize total revenue
Good-better-best ladders allow a firm to serve multiple willingness-to-pay tiers while upgrading customers over time.
Which of the following best describes 'price sensitivity' in CPM methodology?
Answer: The degree to which demand changes in response to price changes
Price sensitivity measures how responsive buyers are to price changes, closely related to the price elasticity of demand.
Segment-specific pricing is legally permissible when:
Answer: Price differences reflect cost differences or do not harm competition
Under the Robinson-Patman Act, price differences between buyers of like goods must be justified by cost differences or competitive necessity.
The Van Westendorp Price Sensitivity Meter identifies prices that are:
Answer: Too cheap, bargain, expensive, and too expensive according to buyers
The Van Westendorp model uses four survey questions to map consumer price perceptions and pinpoint an acceptable price range.