Chapter 15

c. ceiling

Consumer perceptions of the product's value set the ________ for prices.

b. Market-penetration

________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.

a. Value-based pricing

________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing.

a. price skimming

A company may utilize a(n) _____ strategy to recoup its investment in a product faster.

a. price skimming

A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.

e. bait-and-switch

A mattress company that advertises high quality mattresses for an extremely low price while carrying a very low quantity of them is utilizing a _____ pricing strategy by them trying to up-sell customers on a more expensive mattress.

c. price elastic

Durable goods such as TVs and refrigerators are _____.

d. remain the same

Fixed costs ________ as the number of units produced increases.

elastic

If demand changes greatly with a small change in price, we say the demand is ________.

b. Cost-plus pricing

Jeff owns a book company. It costs $10.00 to produce a new book and the company wants a 30% profit, so he charges $13.00 for the book. Jeff is using what type of pricing approach?

value

Price is a signal of _____.

revenue

Price is the only element in the marketing mix that produces ________.

c. oligopolistic competition

Under ________, the market consists of a few sellers who are highly sensitive to each other's pricing and marketing strategies.

d. time-based

When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing.