Chapter 9

Printer companies often charge a fairly low price for their ink jet printers​ (relative to​ costs) and a high price for replacement cartridges. These companies are using a strategy of​ ________ pricing. A. captive-product B. product-bundle C. ​by-product D. product line E. ​two-part pricing

A. captive-product

Many state colleges and universities charge one price for​ in-state students and a higher price for​ out-of-state students. Which price adjustment strategy are these schools​ using? A. Segmented pricing B. Allowance pricing C. Promotional pricing D. Preferred pricing E. Dynamic pricing

A. segmented pricing

Which of the following statements is true regarding how price might play an important role in helping to accomplish company​ objectives? A. Pricing one product has no effect on the sales of other products. B. Pricing can create excitement for a brand. C. Pricing is not subject to government intervention. D. Pricing has no effect on customer loyalty. E. Pricing has no effect on the loyalty and support of resellers.

B. Pricing can create excitement for a brand

If a company wishes to sell the exact number of units to cover both its variable and fixed​ costs, what type of pricing strategy is it​ using? A. Target return pricing B. Break-even pricing C. Value-added pricing D. Good-value pricing E. Cost-plus pricing

B. break-even pricing

What are the five product mix pricing​ situations? A. Product line​ pricing, optional-product​ pricing, captive-product​ pricing, everyday low​ pricing, and service pricing B. Product line​ pricing, optional-product​ pricing, captive-product​ pricing, by-product​ pricing, and product bundle pricing C. Product line​ pricing, optional-product​ pricing, captive-product​ pricing, by-product​ pricing, and product mix pricing D. Two-part pricing, fixed fee​ pricing, captive-product​ pricing, by-product​ pricing, and product bundle pricing E. Product line​ pricing, optional-product​ pricing, captive-product​ pricing, by-product​ pricing, and discount pricing

C. Product line pricing, optional-product pricing, captive-product pricing, by-product pricing, and product bundle pricing

According to the​ video, by offering an a la carte​ menu, premium​ ingredients, and gourmet side​ dishes, Smashburger is able to extract a price premium from its loyal customers. This type of pricing approach is referred to as​ __________ pricing. A. market penetration B. competition based C. value-added D. break-even E. cost based

C. value-added

You paid 75 cents for a can of soda this morning.​ However, the​ seller's cost is only 50 cents. Which type of selling strategy is the soda company most likely​ using? A. Value-added pricing B. Good-value pricing C. Target return pricing D. Cost-plus pricing E. Break-even pricing

Cost-plus pricing

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company​ use? A. Product line pricing B. Product bundle pricing C. Captive-product pricing D. Market-penetration pricing E. Market-skimming pricing

D. Market-penetration pricing

After researching products similar to yours in the​ industry, you decide that your product has superior value. As​ such, you decide to price your product above the other products in the same industry. Which type of pricing strategy are you most likely​ using? A. ​Break-even pricing B. ​Cost-plus pricing C. Cost-based pricing D. Competition-based pricing E. Value-added pricing

D. competition-based pricing

As a​ marketer, you decide to focus not on the cost of producing the​ product, but rather on the​ customer's perception of the value of the product. Which type of pricing are you engaged​ in? A. Cost-plus pricing B. Value-added pricing C. Good-value pricing D. Customer​ value-based pricing E. Break-even pricing

D. customer value-based pricing

Offering just the right combination of quality and good service at a fair price is known as which type of​ strategy? A. ​Cost-based pricing B. Break-even pricing C. ​Cost-plus pricing D. Good-value pricing E. Value-added pricing

D. good-value pricing

Smashburger is investigating adding a​ half-pound burger to the menu at a lower price point. It has performed​ market-pricing experiments, with the new burger listed at either​ $4.29 or​ $3.99. The company has found little change in sales at the lower price. Based upon this​ finding, one could say that demand for the new burger is​ ___________. A. price elastic B. price resistant C. price sensitive D. price inelastic E. undifferentiated

D. price inelastic

A key element of​ Smashburger's pricing strategy is determining price steps between its​ quarter-pound, one-third​ pound, and​ half-pound hamburgers. The practice of setting prices for different products offered by a company within a single category is known as​ __________. A. promotional pricing B. dynamic pricing C. segmented pricing D. product line pricing E. optional-product pricing

D. product line pricing

Many of​ Smashburger's competitors combine a​ burger, fries, and a drink offered at a reduced​ "combo" price. This practice is known as​ __________. A. cost-based pricing B. product line pricing C. optional-product pricing D. product bundle pricing E. captive-product pricing

D. product-bundle pricing

What are the three major pricing strategies used by​ marketers? A. Demand-based pricing,​ cost-based pricing, and​ competition-based pricing B. Customer​ value-based pricing,​ cost-based pricing, and​ revenue-based pricing C. Customer​ value-based pricing,​ cost-based pricing, and​ government-based pricing D. Demand-based pricing,​ revenue-based pricing, and​ government-based pricing E. Customer​ value-based pricing,​ cost-based pricing, and​ competition-based pricing

E. Customer-value based pricing, cost-based pricing, and competition-based pricing

Which of the following statements is true regarding initiating price​ cuts? A. Firms never cut​ prices; they only raise them. B. Cutting price has no effect on costs. C. If faced with excess​ capacity, a firm should not cut its price. D. When faced with falling​ demand, firms should not cut prices. E. Cutting prices in an industry loaded with excess capacity might lead to price wars.

E. Cutting prices in an industry loaded with excess capacity might lead to price wars

Which of the following is a potentially effective action a company could take in response to a​ competitor's price​ cut? A. Raise price B. Decrease perceived value C. Not assess the impact of the price cut D. Reduce both price and quality E. Increase both price and quality

E. Increase both price and quality

Dynamic pricing is when companies continually adjust prices to meet the characteristics and needs of individual customers and situations. Where is this method especially prevalent​ today? A. Service industries B. Large retailers C. Grocery stores D. Franchises E. Online buying

E. Online buying

The price​ ceiling, the maximum price a company can​ charge, is set by​ ________. A. revenue B. the marketing mix C. competitors D. product costs E. customer perceptions of the​ product's value

E. customer perceptions of the product's value

Smashburger is seeking to attract customers who eat out at casual dining​ restaurants, like P.F.​ Chang's and​ Applebee's. The average ticket price for customers at these restaurants is​ $13. For these​ customers, $13 is a​ __________ in considering the relative value of​ Smashburger's offerings. A. good value price B. competition-based price C. break-even price D. target price E. reference price

E. reference price

Internal factors that affect pricing include​ ________. A. the​ company's overall marketing​ strategy, objectives, and the nature of the market B. the​ company's overall marketing​ strategy, the nature of the​ market, and demand C. the nature of the​ market, demand, and the economy D. the​ company's overall marketing​ strategy, objectives, and demand E. the​ company's overall marketing​ strategy, objectives, marketing​ mix, and other organizational considerations.

E. the company's overall marketing strategy, objectives, marketing mix, and other organizational considerations

When a company sets a high price as the initial price of a new​ product, it is pursuing a​ ________ new product pricing​ strategy. A. market-skimming B. ​by-product C. captive-product D. optional-product E. market-penetration

Market-skimming