MAR 3023

¡Supera tus tareas y exámenes ahora con Quizwiz!

________-oriented approaches to pricing set the price to reflect the way the marketer wants consumers to interpret prices relative to competitor's offerings.

Competition

________ quantity discounts apply to the repeated purchases of a particular product over a given time period, typically a year.

Cumulative

________-oriented pricing approaches weigh factors underlying expected customer tastes and preferences more heavily than other factors.

Demand

When a seller pays the cost of loading a product onto a vehicle and transfers title to the buyer at this time, so that the buyer responsible for the remainder of the transportation costs, it is known as ______.

FOB origin pricing

Deceptive pricing is illegal under the ______.

Federal Trade Commission Act

________ are made by manufacturers to list prices to reflect the cost of transportation of the products from seller to buyer.

Geographical adjustments

Cost-oriented approaches to pricing consider which three things in the setting of a product's price?

Overhead Profit Production costs

________ pricing is seen as the exact opposite of skimming pricing when introducing a new product.

Penetration

How does a skimming pricing strategy approach price setting?

Prices are set high initially and then lowered in a series of steps.

Organizations can be most effective using skimming pricing under which two conditions?

The customer understands and highly values the product. The product is protected by patent.

_______ discounts are also known as functional discounts.

Trade

True or false: A "manufacturer's suggested retail price" is illegal only when a manufacturer enforces the practice by coercion.

True

What are two general methods for quoting prices related to transportation costs?

Uniform delivered pricing FOB origin pricing

Under which of the following circumstances is it legal to charge different prices to different customers? (Select all that apply)

When the price differences do not lessen competition When the price differences are due to changing market conditions

Successive price cutting by competitors to increase or maintain their unit sales or market share is known as ______.

a price war

Demand-oriented, cost-oriented, profit-oriented, and competition-oriented are four approaches used to set ______.

approximate price levels

The purpose of using low prices in a loss-leader pricing strategy is to ______.

attract customers that will hopefully buy other products too, at higher margins

Assuming that unit costs for a good or service will drop by some predictable percentage as production increases, and passing these savings along to the consumer in the form of reduced prices is known as ________ pricing.

experience curve

A ________ policy is also known as dynamic pricing.

flexible-price

Select the three special adjustments that are often made to the list or quoted price

geographical adjustments discounts allowances

Prestige pricing means the organization deliberately prices a product ________ so that ________ consumers will be attracted to the product and buy it.

high; quality-conscious

Proving the practice of ________ is difficult because it must be shown that there was an explicit attempt to destroy a competitor with the use of a low price.

predatory pricing

Marketers who use ______ to signal the quality of an item, must be careful not to drop the price of the product below the point where customers become skeptical of its quality and refuse to purchase it.

prestige pricing

Charging different prices to different buyers for goods of like grade and quality is known as ______.

price discrimination

If a firm sells the same product to different buyers at different prices, it may be considered ________.

price discrimination

When a new product appeals to those segments of consumers who are willing to pay a high initial price to have an innovation first, marketers should use a ________ pricing strategy.

skimming

In what pricing strategy are prices lowered in a series of steps with the demand by those who really desire the product being satisfied at the highest prices?

skimming pricing

Because the weather in April is often cold and rainy, not as many fans attend major league baseball games. Knowing this, some teams will price tickets for games in April much lower than games played during the summer months. This is an example of ________ pricing.

yield management

What is a characteristic of bundle pricing?

Consumer value is enhanced by not having to make separate purchases.

________ promises to reduce the average price to consumers while minimizing promotional allowances that cost manufacturers billions of dollars every year.

Everyday low pricing

In what way does the demand curve for prestige pricing differ from the typical demand curve?

There is a point below which a reduced price reduces sales volume, resulting in a backwards C-shaped curve.

A cash discount expressed in the form "3/10" on an invoice means that ______.

a 3 percent discount is available if the invoice is paid in 10 days

Which is an example of deceptive pricing?

a bait and switch to lure customers into the store to sell them a higher priced product

Yield management pricing is ______.

a complex approach that continually matches demand and supply to customize the price for a service

A reduction from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is referred to as ______.

a discount

Vertical price fixing might occur between ______.

a manufacturer and a retailer in the same channel

Rolex takes pride in emphasizing that it makes one of the most expensive watches you can buy, which is an example of ______.

above-market pricing

When an organization deliberately prices a product above the prices set for competing products, to entice those customers for whom pricing doesn't matter, the firm is engaging in ______.

above-market pricing

Standard markup pricing entails ______.

adding a fixed percentage to the cost of all items in a specific product class

A one-price policy means there is one price for ______.

all buyers of the product

A characteristic feature of a prestige demand curve is that as price is lowered, the curve turns back to the left toward its initial level. Why is this so?

because of reduced demand

The marketing of two or more products in a single package price is known as ________ pricing.

bundle

If firms set prices with specific consideration of firms challenging them directly for customers, they have adopted a ________ approach to pricing.

competition-oriented

Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are ______ approaches.

cost-oriented

Adding a fixed percentage or fixed fee to the total costs for a product is known as ________ pricing.

cost-plus

What type of quantity discount is likely to encourage repeat buying by a single customer?

cumulative

For some products where tradition, a standardized channel of distribution, or other competitive factors dictate the price, ________ pricing is used.

customary

Common approaches to pricing are oriented around which four elements?

demand cost competition profit

Penetration, price lining, and bundle pricing are all types of what pricing approach?

demand-oriented

Under the Robinson-Patman Act, promotional allowances can be legally offered to buyers when the seller ______.

does so on an equal basis to all buyers distributing the seller's product

When using predatory pricing, a firm sets a very low price for one or more of its products in order to

drive its competition out of business

Setting different prices for products depending on individual buyers and purchase situations is called a ________ policy.

dynamic-price

The firm's goal in offering a cash discount is to ______.

encourage customers to pay their bills quickly

The practice of replacing promotional allowances with lower manufacturer list prices is known as ________ pricing.

everyday low

Walmart promotes that its average price for products will be lower than the competition. Walmart is able to offer low prices to its customers when its suppliers utilize ________, minimizing expensive promotional allowances.

everyday low pricing

Demand-oriented pricing approaches weigh which factors most heavily?

expected customer tastes and preferences

What are the two options when choosing a price policy?

fixed-price dynamic-price

When two or more competitors explicitly or implicitly set prices, this practice is called ________ price fixing.

horizontal

Despite the Sherman Act and its implications for price fixing, a "manufacturer's suggested retail price" (MSRP) is

illegal only when enforced through coercion.

Odd-even pricing is used to ________, although overuse of this approach may mute its effect.

increase demand for products

For a special promotion, retail stores may deliberately sell a product below its customary price to attract customers, in hopes that they buy other items with large markups, in an approach known as ________ pricing.

loss-leader

Organizations choosing competitor-oriented approaches to set prices might use which two pricing strategies?

loss-leader pricing customary pricing

In penetration pricing, the initial price of the product is set ______.

low, to appeal to the mass market

In target pricing, ______.

manufacturers deliberately adjust the composition of a product to achieve the estimated price that consumers are willing to pay for it.

Price deals that ________ fall into the category of deceptive pricing.

mislead consumers

A ________ quantity discount is based on the amount purchased in a single order, and encourages a large individual purchase.

noncumulative

FedEx encourages companies to ship a large number of packages at one time by offering a ________ quantity discount.

noncumulative

In ________ pricing, an organization sets a price a few dollars or cents under an even number, such as at $3.99.

odd-even

Sears offers a Craftsman radial saw for $499.99 rather than $500, using a(n) ________ pricing approach.

odd-even

A ________ policy is also known as fixed pricing.

one-price

Setting a price with no variation for product buyers is called a ________ policy.

one-price

Cash discounts are offered because they encourage customers to ______.

pay their bills quickly

Organizations using ________ pricing set the initial price low for the introduction of the new product to appeal immediately to the mass market.

penetration

The ability to attract price sensitive customers and discourage competitors from entering a market make which pricing strategy appealing?

penetration

Fixed-price and dynamic-price are the two options when choosing a price ______.

policy

The practice of colluding with other firms to set prices is called ______.

price fixing

When a line of products is priced at a number of different specific pricing points, the ______ strategy is being used.

price lining

When Lexmark sells a laser printer for slightly below its cost, but prices its ink-jet printers with a large profit margin that makes up for the loss on the laser printers, it is using ______.

product-line pricing

When a manufacturer produces several products that are substitutes for one another and others that complement these products, it should use ______.

product-line pricing

When a marketing manager sets prices for all items in a product line, seeking to produce a profit for the entire line but not necessarily each product, it is known as ______.

product-line pricing

Select all of the following that are benefits of a penetration pricing strategy.

production costs drop with increased volume discourages competitors potential to gain market share

By focusing on target profit pricing or target return pricing, a firm is using a ________ pricing approach.

profit-oriented

Instead of offering a ________ allowance to retailers, some manufacturing companies like P&G have chosen to use an everyday low pricing (EDLP) strategy.

promotional

When a manufacturer offers a grocery retailer an extra amount of free product for including this product in weekly advertising and in-store sales, this is considered a ________ allowance.

promotional

Cumulative and noncumulative are the two general kinds of ______ discounts.

quantity

Customers are encouraged to buy a larger number of a single product when a firm offers _______.

quantity discounts

Experience curve pricing entails ______.

reducing prices in a systematic way over time based on the learning effect

Geographic adjustments to prices are used to ______.

reflect the cost of transportation of products from seller to buyer

The firm's goal in offering a trade discount is to ______.

reward wholesalers and retailers for marketing functions

Which of the following would probably be an example of loss-leader pricing?

selling a carton of eggs for $0.99 which is way below cost

A marketing manager uses price lining when he ______.

sells several groups of the same type of product, with each group priced at different specific pricing points

Price fixing is the conspiracy among firms to ______.

set prices for a product

Customary pricing entails ______.

setting a price at a certain level based on factors like tradition or a standardized channel of distribution

For ________ pricing to be effective, there must be sufficient customers willing to buy the product at a high initial price, they should interpret the high price as signifying high quality, and the high price should not attract competition.

skimming

Which is an example of a demand-oriented approach to setting an approximate price?

skimming pricing

Discounts, allowances, and geographic adjustments are considered ________ that affect the list or quoted price.

special adjustments

Adding a fixed percentage to the cost of all items in a specific product class is known as ________ pricing.

standard markup

A price war entails ______.

successive price cutting by competitors to increase or maintain their competitive position

Cost-plus pricing entails ______.

summing total units costs and adding a fixed percentage or fee to arrive at a price

In ________ pricing, an organization estimates what consumers are willing to pay for a product, and works backward, accounting for markups by retailers and wholesalers, to determine what it can charge for the product.

target

Which two are profit-oriented approaches to setting a price?

target return pricing target profit pricing

Bundle pricing refers to ______.

the marketing of two or more products in a single package price.

Reductions off the list price offered to resellers in the marketing channel on the basis of where they are in the channel and the marketing activities they are expected to perform in the future are called ______ discounts.

trade

When using competition-oriented pricing approaches, price setters stress ______.

what "the market" is doing

Price differentials under the Robinson-Patman act are legal under what two circumstances?

when price differences attempt to meet competitors' prices and do not injure competition when price differences result from changing market conditions

Charging different prices for a product in order to maximize revenue for a set amount of capacity at any given time is known as ________ pricing.

yield management


Conjuntos de estudio relacionados

PTA 101 - Major Muscles - Origin, Insertion, Action, and Nerve

View Set

Medical-Surgical Chapter 42: Care of the Surgical Patient

View Set

Atelje 2 / 2 Мой дом - моя крепость dial. 1 - 4

View Set

Trimester 1 - Speed of Sound, Sound, Wave Interaction, Wave Speed, Waves and Vibrations, Newton's Laws of Motion, Velocity and Acceleration

View Set