ch 14
When Lexmark sells a laser printer for slightly below its cost, but prices its ink-jet printers with a large profit margin that makes up for the loss on the laser printers, it is using ______.
product-line pricing
When a manufacturer produces several products that are substitutes for one another and others that complement these products, it should use ______.
product-line pricing
Common approaches to pricing are oriented around which four elements?
profit competition cost demand
When using competition-oriented pricing approaches, price setters stress ______.
what "the market" is doing
demand
-oriented approaches to pricing regard expected customer tastes and preferences as the most important factors in the decision.
________-oriented approaches to pricing set the price to reflect the way the marketer wants consumers to interpret prices relative to competitor's offerings.
Competition
What is a characteristic of bundle pricing?
Consumer value is enhanced by not having to make separate purchases.
________ are made by manufacturers to list prices to reflect the cost of transportation of the products from seller to buyer.
Geographical adjustments
________ pricing is seen as the exact opposite of skimming pricing when introducing a new product.
Penetration
Which is an example of deceptive pricing?
a bait and switch to lure customers into the store to sell them a higher priced product
Yield management pricing is ______.
a complex approach that continually matches demand and supply to customize the price for a service
Demand-oriented, cost-oriented, profit-oriented, and competition-oriented are four approaches used to set ______.
approximate price levels
The marketing of two or more products in a single package price is known as ________ pricing.
bundle
Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are ______ approaches.
cost-oriented
Penetration, price lining, and bundle pricing are all types of what pricing approach?
demand
________-oriented pricing approaches weigh factors underlying expected customer tastes and preferences more heavily than other factors.
demand
Select the three special adjustments that are often made to the list or quoted price.
geographical adjustments, discounts, allowances
Prestige pricing means the organization deliberately prices a product ________ so that ________ consumers will be attracted to the product and buy it.
high; quality-conscious
In target pricing, ______.
manufacturers deliberately adjust the composition of a product to achieve the estimated price that consumers are willing to pay for it.
Price deals that ________ fall into the category of deceptive pricing.
mislead consumers
In ________ pricing, an organization sets a price a few dollars or cents under an even number, such as at $3.99.
odd-even
Sears offers a Craftsman radial saw for $499.99 rather than $500, using a(n) ________ pricing approach.
odd-even
A ________ policy is also known as fixed pricing.
one-price
Setting a price with no variation for product buyers is called a ________ policy.
one-price
Organizations using ________ pricing set the initial price low for the introduction of the new product to appeal immediately to the mass market.
penetration
Charging different prices to different buyers for goods of like grade and quality is known as ______.
price discrimination
If a firm sells the same product to different buyers at different prices, it may be considered ________.
price discrimination
When a line of products is priced at a number of different specific pricing points, the ______ strategy is being used.
price lining
Cost-oriented approaches to pricing consider which three things in the setting of a product's price?
profit, production costs, overhead
By focusing on target profit pricing or target return pricing, a firm is using a ________ pricing approach.
profit-oriented
A price reduction offered to channel members for featuring the manufacturer's product in their advertising or selling activities is called a(n) _______________ allowance.
promotional
Instead of offering a ________ allowance to retailers, some manufacturing companies like P&G have chosen to use an everyday low pricing (EDLP) strategy.
promotional
Cumulative and noncumulative are the two general kinds of ______ discounts.
quantity
Customers are encouraged to buy a larger number of a single product when a firm offers _______.
quantity discounts
Geographic adjustments to prices are used to ______.
reflect the cost of transportation of products from seller to buyer
A marketing manager uses price lining when she ______.
sells several groups of the same type of product, with each group priced at different specific pricing points
When a new product appeals to those segments of consumers who are willing to pay a high initial price to have an innovation first, marketers should use a ________ pricing strategy.
skimming
In what pricing strategy are prices lowered in a series of steps with the demand by those who really desire the product being satisfied at the highest prices?
skimming pricing
Which is an example of a demand-oriented approach to setting an approximate price?
skimming pricing
Discounts, allowances, and geographic adjustments are considered ________ that affect the list or quoted price.
special adjustments
In ________ pricing, an organization estimates what consumers are willing to pay for a product, and works backward, accounting for markups by retailers and wholesalers, to determine what it can charge for the product.
target
Which two are profit-oriented approaches to setting a price?
target return pricing target profit pricing
What is a marketer most likely trying to convey about a product if it is priced using prestige pricing?
the product is of high quality
Charging different prices for a product in order to maximize revenue for a set amount of capacity at any given time is known as ________ pricing.
yield management