Chapter 11 Set
To combat a competitor's price cut or lower-priced store brands, a national brand such as Luvs disposable diapers was launched along with P&G's flagship brand of disposable diapers, Pampers. Which type of brand is Luvs considered to be in this case?
Fighter brand
Which of the following product mix pricing strategies involves pricing additional or accessory products sold along with the main product?
Optional product pricing
Bill goes to a sporting goods store several times and spends a considerable amount of time checking out golf clubs, taking practice swings with them, and asking the sales staff questions. He compares prices, and then goes home and buys a set online at a lower price. Bill's behavior is called what?
Showrooming
Amazon developed the Kindle electronic book reader and sells it at a reasonably low margin. The firm uses which pricing strategy to capture additional profits through the sale of easily downloaded online books and magazines?
captive product pricing
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
The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called ________ pricing.
customer segmented
Which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume purchases, paying early, or participating in sales-support programs?
discount and allowance pricing
The Internet offers ________, where the price can easily be adjusted to meet changes in demand.
dynamic pricing
Consumers are less likely to use price to judge the quality of a product when they ________.
have experience with the product
Companies introducing a new product can choose between two broad strategies. One is market-skimming pricing. Which of the following is an alternative strategy?
market penetration pricing
When Bic introduced disposable razors, the product and market met several criteria for using ________ pricing. The market was price sensitive, and there were substantial economies of scale in distribution and production.
market skimming
Which of the following product mix pricing strategies involves pricing multiple products to be sold together?
product bundle pricing
________ allowances are payments or price reductions that reward dealers for participating in advertising and sales support programs.
promotional
Hearth & Home, a store which sells household products, has announced a one-week sale on its new carpet line. This is an example of ________.
promotional pricing
What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?
promotional pricing
Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?
psychological pricing
Which of the following would most likely lead to a company initiating a price increase?
over-demand