Marketing Ch 9 Warm up (Exam 2)

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. Online buying B. Grocery stores C. Service industries D. Large retailers E. Franchises

A. Online buying

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 line C. ​by-product D. ​two-part pricing E. product-bundle

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. Promotional pricing B. Segmented pricing C. Preferred pricing D. Dynamic pricing E. Allowance pricing

B. Segmented pricing

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

B. customer perceptions of the​ product's value

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

C. Increase both price and quality

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 might 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 might lead to price wars.

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

D. Pricing can create excitement for a brand.

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. ​Captive-product pricing B. ​Market-skimming pricing C. Product line pricing D. ​Market-penetration pricing E. Product bundle pricing

D. ​Market-penetration 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

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

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

E. market-skimming

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 demand C. the nature of the​ market, demand, and the economy D. the​ company's overall marketing​ strategy, objectives, and the nature of the market 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.