CAPSTONE - Chapter 11 quiz

Which free on board (FOB) pricing indicates that until the goods arrive at the purchaser's location, title doesn't change hands and freight charges are the responsibility of the seller?

FOB-destination

________Blank is the amount of price increase that can be taken without affecting customer demand.

Just noticeable difference (JND)

When a seller advertises an item at an unbelievably low price to lure customers into a store, and then tells customers that it doesn't have the advertised item and instead pushes a similar item with a higher price and margin, the seller is participating in the illegal practice of

bait and switch.

Kallie goes to a store to buy a new liquid soap dispenser. When she purchases a new dispenser from the store she gets two liquid soap refill packets for free, as part of a promotional offer, but she will need to purchase refills later. In this scenario, the pricing strategy used for the soap dispenser is ________Blank pricing.

captive

0.5points Item 15 A countertop store will give customers a 10 percent discount if they pay their bills in full in 20 days; however, after 20 days they do not receive a discount. This is an example of a ________Blank.

cash discount

Devon runs Uncommon Cakes, a gourmet cupcake bakery. To set prices for her cupcakes, Devon looks at the cost of making each cupcake and then adds an additional amount on top of that to arrive at her price. Devon is using

cost-plus pricing.

To use target return pricing, one must first calculate total ________Blank costs.

fixed

Firms and brands that continually attempt to operate in the ________Blank quadrant of the generic price-quality positioning map may damage their relationships with customers and not survive.

low price, no benefits

A strategy to intentionally sell below cost to push a competitor out of a market, then raise prices to new highs, is called

predatory pricing.

One rationale for establishing a price skimming objective is that ________Blank lends status to a product or brand by virtue of a price relatively higher than the competition.

prestige pricing

Pierre works at a ski shop. He has just gotten a shipment of new snowboards and realizes that the company has priced its snowboards higher than the rest of the boards in his shop. Since Pierre took a marketing class in college, he knows that the company is most likely using

prestige pricing.

________Blank is a critical component that plays into a customer's assessment of the value afforded by a firm and its offerings.

price

n proposing a ________Blank strategy, the marketing manager usually is convinced that a strong price-quality relationship exists for the product.

price skimming

Suki is trying to explain to one of her ticket counter associates the differences in price associated with concert tickets. She explains that the lowest-priced tickets are for the least desirable seats and the highest-priced tickets are for the most desirable seats, with the rest of the ticket prices falling somewhere in between. Suki is describing ________Blank pricing.

product line

Healthy Living will send retailers a check if the retailer successfully includes its vegetable-based smoothies in its promotional efforts. Healthy Living uses ________Blank to incentivize retailers.

promotional allowances

Besides the standard auction approach where buyers bid for a seller's offering, it is now very common for sellers to utilize ________Blank to bid prices to capture a buyer's business.

reverse auctions

A firm attempts to find a neutral set point for price that is neither low enough to raise the ire of competition nor high enough to put the value proposition at risk with customers. The firm is adopting a(n) ________Blank pricing strategy.

stability

In markets where customers typically witness rapidly changing prices, ________Blank can provide a source of competitive advantage.

stability pricing

Pascal wants to buy a new car that is of good quality and available at an affordable price. After exploring the available options, Pascal decides to purchase a car made by a popular car manufacturer, which has a high retail price but offers very low operating and maintenance costs. In this scenario, the pricing strategy employed by the car manufacturer is

value pricing.

With ________Blank pricing, customers are allowed—even encouraged—to haggle about prices.

variable