ch 9
A skimming pricing strategy is most likely to succeed for which of the following conditions?
Competitors should not be able to enter the market quickly.
_______ 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.
________ is a measure of the sensitivity of demand to changes in price.
Price elasticity
For a market-skimming pricing strategy to make sense, which condition must be present in the market?
The costs of producing a smaller volume cannot cancel the advantage of charging more.
Which is NOT an internal factor affecting pricing decisions?
The nature of the market
Marketers must consider external considerations in establishing pricing. Which of the following represents those external considerations?
The nature of the market, demand, and environmental factors
__________ is one major objective associated with a market-penetration pricing strategy.
Winning large market share
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
The seven price adjustment strategies are ________, promotional pricing, geographical pricing, dynamic and personalized pricing, and international pricing.
discount and allowance pricing, segmented pricing, psychological pricing
Roshika has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as a(n) ________.
indicator of quality
Pricing strategies usually change as a product passes through its life cycle but are especially challenging during the _________ stage.
introductory
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
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
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
Value-added pricing
Nintendo makes little or no profit on its Switch video game consoles. However, it hopes to more than make up for thin console margins through sales of Switch video games, which yield much higher unit sales and margins. Nintendo is using a strategy of ________ pricing.
captive-product
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
A company can use _________ by setting a low initial price to penetrate the market deeply and win a large market share.
market-penetrating pricing
In pricing innovative new products, a company can use ________ by initially setting high prices to maximize the amount of revenue from a sufficient number of buyers willing to pay the higher price.
market-skimming pricing
