marketing ch 10 quiz
price lining
Marketers often apply their understanding of the psychological aspects of pricing in a practice they call ________, whereby items in a product line sell at different prices, or price points.
a sharing economy
One current consumer trend is consumers who allow others to borrow a good or service for a small fee, usually done on an on-line platform. This is referred to as _____.
loss-leader pricing
When retailers advertise products at very low prices or even below cost in the hopes that customers will purchase other items at regular prices, they are engaging in _____.
They are organic
Which feature of cryptocurrencies is attractive to many around the globe?
Price leadership
Which of the following pricing strategies is usually the rule in an oligopolistic industry that a few firms dominate, which might be in the best interest of all players because it minimizes price competition?
Seasonal discounts
Which of the following pricing tactics is used when price reductions are offered only during a certain time of the year?
Freemium pricing
a business strategy in which a product in its most basic version is provided free of charge but the company charges money for upgraded versions of the product with more features, greater functionality, or greater capacity
Internet price discrimination strategy
a pricing strategy in which the price changes for different buyers based on order size or geographic location
Fixed cost
costs of production that do not change with the number of units produced
Demand-based pricing
firm bases the selling price on an estimate of volume or quantity that it can sell in different markets at different prices
Yield management pricing
heavily used by hospitality companies like airlines, hotels, and cruise lines because these businesses charge different prices to different customers in order to manage capacity while they maximize revenues
Dynamic pricing
online strategy in which the price can easily be adjusted to meet changes in the marketplace
Bait-and-switch
refers to a deceptive pricing tactic in which an advertised price special is used as bait to get customers into the store with the intention of selling them a higher-priced item
Variable cost
refers to the costs of production that fluctuate depending on the number of units produced
Market share
refers to the percentage of a market, defined in terms of either sales units or revenue, accounted for by a specific firm, product lines, or brands
Opportunity cost
refers to the value of something we give up to obtain something else
Price fixing
two or more companies conspire to keep prices at a certain level
Price bundling
_____ means selling two or more goods or services as a single package for one pricelong dasha price that is often less than the total price of the items if bought individually.
Skimming
_____ pricing means that the firm charges a high, premium price for its new product with the intention of reducing it in the future in response to market pressures.
prestige
A Rolex watch, a Louis Vuitton handbag, and a Rolls Royce automobile are all examples of _____ products.
Markup
an amount added to the cost of a product to create the price at which a channel member will sell the product
Elastic demand
demand in which changes in price have large effects on the amount demanded
