Marketing Ch 9 Quiz (Exam 2)
Companies that use ________ continually adjust prices to meet the characteristics and needs of individual customers and situations. A. dynamic pricing B. psychological pricing C. segmented pricing D. promotional pricing E. cash rebates
A. dynamic pricing
Bath & Body Works offers "three-fer" deals on its soaps and lotions (such as three antibacterial soaps for $10). This is an example of _______ pricing. A. product-bundle B. captive-product C. by-product D. two-part pricing E. product line
A. product-bundle
________ refers to setting price based on buyers' perception of value rather than on the seller's cost. A. Cost-based pricing B. Customer value-based pricing C. Cost D. Value-added pricing E. Good-value pricing
B. Customer value-based pricing
Which of the following statements is true regarding initiating price increases? A. Prices should be increased when there is a lack of demand. B. Wherever possible, the company should consider ways to meet higher costs or demand without raising prices. C. Cost inflation is not a factor in price increases. D. Companies do not need to communicate reasons for price increases to customers. E. Price increases do not impact profits.
B. Wherever possible, the company should consider ways to meet higher costs or demand without raising prices.
Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ___________ pricing. A. product-bundle B. product line C. captive-product D. by-product E. two-part pricing
C. captive-product
When Apple Computer Company introduced its iPhone, its priced the new product at $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a ___________________ new product pricing strategy. A. captive-product B. optional-product C. market-skimming D. by-product E. market-penetration
C. market-skimming
Which of the following statements is true regarding initiating price cuts? A. When faced with falling demand, firms should not cut prices. B. Firms never cut prices; they only raise them. C. Cutting price has no effect on costs. D. Cutting prices in an industry loaded with excess capacity may lead to price wars. E. If faced with excess capacity, a firm should not cut its price.
D. Cutting prices in an industry loaded with excess capacity may lead to price wars.
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing? A. Breakeven pricing B. Cost-plus pricing C. EDLP pricing D. Value-added pricing E. High-low pricing
D. Value-added pricing
Geared2Beer, a craft beer brand, identifies a market segment that is willing to pay premium prices for its craft beer, and Geared2Beer managers select an ideal selling price. Managers then determine the costs to create craft beer that meets the ideal selling price. The company's pricing approach is referred to as ________. A. target return pricing B. EDLP C. value-added pricing D. target costing E. cost-plus pricing
D. target costing
One major objective associated with a market-penetration pricing strategy is to ________. A. attract buyers willing to pay a higher price B. skim off small but profitable market segments C. prevent customer dissatisfaction D. win a large market share E. avoid everyday low pricing
D. win a large market share
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. market-skimming pricing B. psychological pricing C. product bundle pricing D. market-penetration pricing E. captive-product pricing
D. market-penetration pricing
Which of the following is a cost-oriented pricing approach? A. High-low pricing B. EDLP pricing C. Competition-based pricing D. Value added pricing E. Breakeven pricing
E. Breakeven pricing
Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which form of segmented pricing are these schools using? A. product form pricing B. customer-segment pricing C. time-based pricing D. promotional pricing E. location-based pricing
E. location-based pricing
Internal factors that affect pricing include ________. A. The company's overall marketing strategy, the nature of the market, and demand. B. The company's overall marketing strategy, objectives and the nature of the market 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, and marketing mix
E. the company's overall marketing strategy, objectives, and marketing mix
A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing. A. by-product B. captive-product C. product-bundle D. product line E. optional-product
E. optional-product