Chapter 10

Which of the following is true of gray markets?

Gray market goods can be a boon for consumers.

Which of the following is true of predatory pricing?

It is considered an attempt to create a monopoly.

Which of the following is true of markup pricing?

It is not very effective at maximizing profits.

Which of the following best describes the term black market?

It refers to the illegal buying and selling of products outside of sanctioned channels.

Which of the following is true regarding the influence of technology on pricing?

Mobile applications can be used to direct users to online sites to complete a purchase

_____ is a pricing strategy that involves pricing a product higher than competitors to signal that it is of higher quality.

Prestige pricing

Which of the following is the first step in the price-setting process?

define the pricing objectives

Frozen Yummy is an ice-cream manufacturer. Its marketing strategy from the month of November to February is "buy one get one free." Which of the following best describes the strategy applied by Frozen Yummy?

seasonal discounts

_____ involves constantly updating prices to reflect changes in supply, demand, or market conditions

Dynamic pricing

The _____ is a law passed in 1914 that seeks to prevent practices that may cause injury to customers, that cannot be reasonably avoided by customers, and that cannot be justified by other outcomes that may benefit the consumer or the idea of free competition.

Federal Trade Commission Act