Chapter 11 marketing
Market skimming prices are preferred in all of the following conditions except __________. A. an initial low price is set by the companies B. enough buyers must want the product at that price C. the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more D. competitors should not be able to enter the market easily and undercut the high price E. the product's quality and image must support its higher price
A
In __________pricing, the company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs. A. segmented B. discount and allowance C. psychological D. dynamic E. promotional
A
Which of the following statements regarding dynamic pricing is correct? A. Dynamic pricing could cause consumer resentment and damage customer relationships. B. The dynamic pricing tactic of surge pricing is legally questionable. C. Dynamic pricing is only effective when used online. D. Dynamic pricing benefits only consumers. E. Because of dynamic pricing, online consumers no longer compare prices
a
A company has set a low price on a new product it introduced. They want to maximize their market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use? A. Psychological pricing B. Market-penetration pricing C. Captive-product pricing D. Optional product pricing E. Market-skimming pricing
b
Assume a competitor has cut prices and a company determines they should respond. Effective actions that the company could initiate include __________. A. raising prices B. improve quality and decrease prices C. launch a low-price fighter brand D. reducing perceived value E. decrease quality and increase prices
c
Which of the following statements regarding public policy and pricing is correct? A. Companies are usually free to charge whatever prices they wish. B. It is legal in some industries for sellers to collude with competitors when setting prices. C. Companies can, under some circumstances, price items below cost. D. Federal statutes apply to both interstate and intrastate commerce. E. Sellers are allowed to punish dealers who do not price a product at the manufacturer's suggested retail price (MSRP).
c
Many amusement parks charge a daily ticket or season pass charge plus additional fees for food and other in-park features. This is called __________. A. product line pricing B. product-bundle pricing C. optional-product pricing D. by-product pricing E. two-part pricing
e
Companies that make products that must be used along with a main product are using __________. A. product line pricing B. by-product pricing C. captive-product pricing D. product bundle pricing E. optional-product pricing
C
The pricing method in which sellers combine several products and offer a reduced price is known as __________. A. by-product pricing B. optional-product pricing C. product bundle pricing D. product line pricing E. captive-product pricing
C
Market penetration prices are preferred in all of the following conditions except __________. A. the production and distribution costs must decrease as sales volume increases B. the penetration price must maintain its low-price position C. the low price must help keep out the competition D. enough buyers must want the product at a higher price E. the market must be highly price sensitive so that a low price produces more market growth
D
Some sellers use 00-cent endings on regularly priced items and 99-cent endings on discount merchandise. This is an example of pricing referred to as __________. A. dynamic pricing B. promotional pricing C. geographical pricing D. segmented pricing E. psychological pricing
E
A soda pop company offers a discount to a grocer. In exchange, the grocer agrees to provide in-store advertising for the soda pop and additional sales-support. This is an example of __________. A. promotional allowances B. discounts C. segment discounts D. trade-in allowances E. cash discounts
a
Techniques that can be used by sellers for avoiding customers' perception of price gouging includes all of the following except __________. A. rationing products to customers B. the company should consider ways to meet higher costs or demand without raising prices C. price increases should be supported by company communications telling customers why prices D. the company can shrink the product or substitute less-expensive ingredients instead of raising the price E. maintaining a sense of fairness surrounding any price increase
a
Which of the following is a concern when using optional-product pricing? A. Which products to include in the base price and which to offer as options B. How to determine the price steps between different products in a product line C. How to price products that must be used with the main product D. Which products should be bundled at a lower price E. Whether to set a fixed fee or a variable usage rate
a
Which of the following statements is true concerning new product pricing strategies? A. For a market-skimming strategy to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more. B. For a market-penetration strategy to work, production and distribution costs must increase as sales volume increases. C. A market-penetration strategy should be used if the market is not highly price sensitive. D. When using a market-skimming strategy, marketers do not need to focus on the product's quality and image. E. If competitors can easily enter the market, a market-skimming strategy should be used.
a
Federal legislation on __________ states that sellers must set prices without talking to competitors. A. deceptive pricing B. price-fixing C. trade-restrain D. interstate commerce E. discriminatory pricing
b
What is the purpose of the Robinson-Patman Act? A. To prevent predatory pricing B. To prevent price fixing C. To prevent unfair price discrimination D. To prevent deceptive pricing E. To prevent scanner fraud
c
What is predatory pricing? A. Sellers offering the same price terms to customers at a given level of trade B. Setting prices without talking to competitors C. A manufacturer requiring dealers to charge a specified retail price for its product D. Selling below cost with the intention of punishing a competitor E. Selling below cost to unload excess inventory
d
Cheese makers in Wisconsin sell their leftover brine to local city and county highway departments, which use it in conjunction with salt to melt icy roads. Which product mix pricing strategy does this represent? A. Two-part pricing B. Optional-product pricing C. Product line pricing D. Product-bundle pricing E. By-product pricing
e
