Chapter 10 Quiz
The forms of demand-based pricing are ___.
target costing and yield management pricing
When McDonald's introduced their new pie flavor at the introductory price of $.99 for a limited time only, they were practicing which pricing strategy?
trial pricing
Which of the following is NOT a type of pricing objective?
types of pricing objectives: sales or market share profit image enhancement customer satisfaction competitive effect
Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This exemplifies ________.
Cost-plus pricing
A firm is using a(n) ________ strategy when it introduces a product at a very low price to gain market share early on.
penetration pricing
Which of the following is a measure of the sensitivity of customers to changes in price?
price elasticity of demand
___ Is the assignment of value, or the amount a consumer must give to receive a product.
Price
Enforcing laws against ___ is complicated because such practices are similar to the legal practice of "trading up".
bait-and-switch
When setting prices, a company must consider factors in its pricing environment. ___ such as the business cycle, economic growth, and consumer confidence can have a significant impact on the firm's pricing strategies.
economic trends
Which of the following products most likely has inelastic demand?
examples: gas electricity water drinks and clothing tobacco food oil