Chapter 11

Under which type of geographic pricing strategy does each customer take responsibility for the freight charges for the product from the factory to its destination?

FOB-origin pricing

______ are formed by noting current prices, remembering past prices, or assessing the buying situation.

Reference prices

Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive.

by-product

Which of the following product mix pricing strategies involves pricing products that can only be used with the main product?

captive product pricing

______ occurs when a seller states price savings that are not actually available to consumers.

deceptive pricing

Which of the following is a price adjustment strategy?

discount and allowance pricing

The Internet offers _____, where the price can easily be adjusted to meet changes in demand.

dynamic pricing

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________ pricing.

market skimming

Companies that set a low price for a new product in order to attract a large number of buyers and a large market share are using the _____ strategy.

market-penetration pricing

When a company sets a high price for a new product with the intention of reducing the price in the future it is using the ______ pricing strategy

market-skimming

Which of the following product mix pricing strategies involves pricing additional or accessory products sold along with the main product?

optional-product pricing

Which of the following product mix pricing strategies involves pricing multiple products to be sold together?

product bundle pricing

Under ____ pricing, different versions of product are priced differently but not according to differences in their cost.

product form

Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features and competitors prices?

product line pricing

Which of the following is a price adjustment strategy that considers how a customers perception of a product is influenced by its price?

psychological pricing

By definition, _____ pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.

segmented

When a firm varies its prices by the season, it is using ____ pricing.

time-based

When theaters vary seat prices due to audience preferences for seats in coveted rows, they use _____ pricing.

location-based

Big Mike's Health Food Store sells nutritional energy foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of ________.

dynamic pricing

Which form of geographic pricing is a company using when it charges the same rate to ship a product anywhere in the United States? A) FOB-origin pricing B) psychological pricing C) zone pricing D) uniform-delivered pricing E) basing-point pricing

uniform-delivered pricing