AGEC Quiz #2

A restaurant wants to use value-based pricing. It knows the costs of the ingredients in the food. It must also factor in ________ in determining customer satisfaction and value.

Atmosphere and decor of the restaurant

Coors has several assets going for it that should prepare it in the high-stakes, highly competitive beer industry of the future. It has strong customer loyalty, high awareness, high perceived quality, and credibility. All these factors are combined in the last phrase of veteran industry analyst Robert S. Weinberg's comment: "The brand is strong, the beer is good and they have their own traditions. They have phenomenal ________."

Brand equity

Which of the following product mix pricing strategies did Polaroid use when it set the general price range of its cameras low and the markup on its film high?

Captive product pricing

A cooperative oligopoly (such as OPEC) is sometimes called a

Cartel

If an international court can establish that the defendant country sold its products in the plaintiff's country at prices lower than the defendant's cost of production, this is usually ruled as evidence of:

Dumping

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?

Growth

Consumers are less likely to use price to judge the quality of a product when they

Have experience with the product

________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

High low

Which new product pricing strategy would you use if your competitors will be slow to enter and/or you have great image and quality product?

Market skimming pricing

Which new product pricing strategy would you use if your market is price-sensitive and your production costs fall dramatically with increased output?

market penetration pricing

________ involves the use of a successful brand name for new or modified products in a new category.

A line extension

What did I suggest could generate this shape for a product's life cycle?

Adding new futures

Which is one of the conditions required for price discrimination?

All of the above

Two factors are associated with the attribute of "quality" in a product. The first is level of quality (or costliness). The other is:

Consistency

As a general pricing approach, value-based pricing uses buyers' perceptions of value rather than sellers' ___________ as the key to pricing.

Cost

A good brand name should most likely be ________.

Distinctive

Which of the following stages of the product life cycle is characterized with high promotional expenditures that result from an effort to create consumer awareness?

Introduction

Because of ________, a company cannot make its product illegally similar to a competitor's already established product.

Patent laws

Which of the following companies uses captive product pricing?

Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries

Product attributes include all of the following EXCEPT ________.

Price

Noticing that themed envelopes aren't selling well, Charles Payton decides to offer customers a special "letter writing" kit. He prices the kit—which comprises letter paper, matching envelopes, and pens—at $5, even though the combined prices of the individual items is $8. Which of the following pricing strategies is he using?

Product bundle pricing

Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and competitors' prices?

Product line pricing

Wal-Mart seems to have discovered that big, heavy apples bring in more revenue when they are sold for prices that look reasonable by the pound. This psychological pricing factor is defined as: "Prices that buyers carry in their minds and refer to when they look at a given product." What is this factor called?

Reference prices

When amusement parks charge customers for admission and later for food and beverages, they are following a ________ pricing strategy.

Two-part

________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying.

Unsought products