BUAD 332 Exam 3
Printer companies often charge a fairly low price for their inkjet printers (relative to costs) and a high price for replacement cartridges. These companies are using a strategy of ___________ pricing.
Captive-product
What are the product-mix pricing situations?
Captive-product pricing, optional-product pricing, product line pricing, and product bundle pricing
To successfully implement a market-skimming strategy for a new product, which of the following conditions needs to be present?
Competitors are not able to enter the market quickly and undercut the high price.
Price ceilings are set by customer perception. Which of the following sets the floor for the price that a company charges?
Costs
In setting its overall pricing strategy, companies need to consider three factors: ______, ______, and ______.
Customer perceived value, costs, and competitors' pricing strategies
_______ of the product's value set the ceiling on pricing, while _______ set the floor.
Customer perceptions; costs
Which of the following is true regarding the price-demand relationship?
If demand is elastic, sellers will consider lowering their prices.
Which of the following pricing strategies would a company use to attract a large number of buyers quickly and win a large market share?
Market-penetration pricing
A company sets a high price on a new product it introduces to maximize revenue from various market segments. Which new product pricing strategy is the company using?
Market-skimming pricing
Of the following, which is NOT one of the product-mix pricing situations?
Penetration pricing
Beyond the market and the economy, what other factors in its external environment must a company consider when setting prices?
Resellers, the government, and social concerns
Marketers must consider external considerations in establishing pricing. Which of the following represents those external considerations?
The nature of the market and demand and other environmental factors
How do companies apply pricing strategies to accommodate differences in customer segments and situations?
They apply a variety of price adjustment strategies.
When companies treat customers fairly and make certain they understand pricing and pricing terms, this leads to ________________.
building strong and lasting customer relationships
Companies have to think carefully when considering price changes. They must consider which of the following?
buyer and competitor reactions
Value-based pricing begins with analyzing ___________.
consumer needs and value perceptions
Marketers use three major pricing strategies: ______________________.
customer value-based pricing, cost-based pricing, and competition-based pricing
One form of ______ involves bogus reference or comparison prices, as when a retailer sets artificially high "regular" prices and then announces "sale" prices close to its previous everyday prices.
deceptive pricing
The seven price adjustment strategies are _____, ______, _____, promotional pricing, geographical pricing, dynamic pricing, and international pricing.
discount and allowance pricing, segmented pricing, psychological pricing
A company's pricing strategy is affected by internal factors such as ___________________.
overall marketing strategy, objectives, marketing mix, and other organizational considerations
Occupation, age, and lifestyle are _________ factors that influence consumer buyer behavior.
personal
The illegal practice of selling below cost to harm competitors is known as ______.
predatory pricing
Of the following, which is core element of our free-market economy?
price competition
Federal legislation on _________states that sellers must set prices without talking to competitors.
price-fixing
Combining products for one price can promote the sales of products consumers might not otherwise buy, but the combined price must be low enough to get them to buy the package. This is known as ______.
product bundle pricing
There are several types of product mix pricing situations, which include ______________, by-product pricing, and product bundle pricing.
product line pricing, optional-product pricing, captive-product pricing
___________ are payments or price reductions that reward dealers for participating in advertising and sales-support programs.
promotional allowances
For services, there is a form of captive-product pricing known as _____ pricing.
two-part
Setting the base price for a product is only the start. The company must then adjust the price to account for ____________________________ differences.
customer and situational
Pricing strategies usually change as a product passes through its life cycle but are especially challenging during the _______ stage.
introductory
Laws prohibit ____________, which means a manufacturer cannot require dealers to charge a specified retail price for its product.
retail price maintenance
Another price adjustment strategy is ______________ pricing, where the company sells a product at two or more prices to accommodate different customers, product forms, locations, or times.
segmented
