Chapter 11

The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called ____ pricing

customer segment

Which of the following is true of product line pricing?

The price steps take cost differences between products in the line into account.

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

Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages that do not, even though the cottages and services offered are identical in every other aspect. This form of pricing is called ____ pricing

Location-based

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

Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two models share the same specifications. What type of pricing does Multiprint use?

captive product pricing

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

captive product pricing

A market-skimming pricing strategy should NOT be used for a new product when ____

competitors can undercut prices easily

Big Mike's Health Food Store sells nutritional energy foods on Amazon.com. The prices of the products sold changes very often to meet the needs of individual customers and different market situations. This strategy is an example of _____

dynamic 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

In a bid to attract more customers in a market that has several competitors, Barrymore's Bakery slashed the prices of all its products by 50 percent. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using?

market-penetration pricing

Which of the following would most likely lead to a company initiating a price increase?

over demand

Savings For You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most likely guilt of ____

predatory pricing

When sellers set prices after talking to competitors and engaging in collusion, they are involved in ____

price fixing

Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more sophisticated tablets at $399 per unit. The more features a model has, the more expensive it is. What pricing strategy is Tone Zone using for its range of tablets?

product line pricing

Mark's Markers, a manufacturer of white board markers, has required its dealers to charge a specified retail price for its markers. Mark's is most likely guilty of _____

retail price maintenance

Price discrimination is legal when a _____

seller can prove its costs are different when selling to different retailers

Which of the following companies uses product bundle pricing?

Panizza, whose combo meals are priced lower than its individual components sold together

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

optional product pricing