Chapter 9 Quiz Write

If the company has selected its target market and positioning​ carefully, then its marketing mix​ strategy, including​ price, will be fairly straightforward. Of the​ following, which is NOT one of the common pricing​ objectives? A. Preventing competition B. Avoiding government intervention C. Supporting resellers and gaining their support D. Customer retention and building profitable customer relationships E. Grabbing international market share

Grabbing international market share

When, if​ ever, is price discrimination​ allowed? A. If the seller is selling via the Internet as its main​ channel, then it is legal. B. If the seller can prove that it is allowable in certain states and local retailing​ areas, then it is legal. C. If the seller can substantiate that it is distributing​ internationally, then it is legal. D. If the seller can prove that its costs are different when selling to different​ retailers, then it is legal. E. If the seller can prove that its revenue is affected when selling to similar​ retailers, then it is legal.

If the seller can prove that its costs are different when selling to different​ retailers, then it is legal.

New, premium movie theaters offer features such as online reserved​ seating, high-backed leather executive chairs with armrests and​ footrests, the latest in digital​ sound, super-wide​ screens, and other amenities for which they charge a higher price. This is an example of which type of​ pricing? A. EDLP B. Breakeven pricing C. Cost-plus pricing D. High-low pricing E. Value-added pricing

Value-added pricing

Internal factors that affect pricing include​ _________________. A. The​ company's overall marketing​ strategy, the nature of the​ market, and demand B. The​ company's overall marketing​ strategy, objectives, and the nature of the market C. The​ company's overall marketing​ strategy, objectives, and demand D. The nature of the​ market, demand, and the economy E. The​ company's overall marketing​ strategy, objectives, and marketing mix

The​ company's overall marketing​ strategy, objectives, and marketing mix

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company​ use? A. market-skimming pricing B. psychological pricing C. market-penetration pricing D. captive-product pricing E. product bundle pricing

market-penetration pricing

When Apple introduced its iPhone​ X, it priced the new product at nearly​ $1,000, considerably higher than competing smart phones. Apple was pursuing a​ ___________________ new product pricing​ strategy. A. optional-product B. premium pricing C. captive-product D. by-product E. market-penetration

premium pricing

Which of the following refers to setting prices based on​ buyers' perception of value rather than on the​ seller's cost? A. Good-value pricing B. Value-added pricing C. Cost-based pricing D. Cost-plus pricing E. Customer​ value-based pricing

Customer​ value-based pricing

Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is​ Sadie's using? A. High-low pricing B. Break-even pricing C. Good-value pricing D. Value-added pricing E. Cost-based pricing

Good-value pricing

Which of the following is true regarding the​ price-demand relationship? A. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. B. Demand and price are directly related—the higher the​ price, the greater the demand. C. If demand is​ inelastic, a small change in price will result in a large change in demand. D. If demand is​ elastic, sellers will consider lowering their prices. E. Price elasticity measures how responsive price will be to a change in demand.

If demand is​ elastic, sellers will consider lowering their prices.

Of the​ following, which is true about​ pricing? A. Companies usually are free to charge whatever prices they wish. B. Price competition is a core element of our​ free-market economy. C. Federal law is the overriding authority on pricing. D. Companies have no obligation to consider broader societal pricing concerns. E. Companies do not need to communicate reasons for price increases to customers.

Price competition is a core element of our​ free-market economy.

A variation of​ break-even pricing is​ ____________________, which uses the concept of a​ break-even chart that shows the total cost and total revenue expected at different sales volume levels. A. Target return pricing B. Competition-based pricing C. Value-added pricing D. High-low pricing E. Everyday low pricing​ (EDLP)

Target return pricing

________________________ is one major objective associated with a​ market-penetration pricing strategy. A. Preventing customer dissatisfaction B. Skimming off small but profitable market segments C. Avoiding everyday low pricing D. Attracting buyers willing to pay a higher price E. Winning large market share

Winning large market share

Roshika has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about​ wine, she will likely use the price of the wines as​ ________. A. an indicator of the cost of production B. an indicator of quality C. an indicator of geographic pricing D. a​ limited-time offer E. a type of segmented pricing

an indicator of quality

Gillette charges a fairly low price for its razors​ (relative to​ costs) and a high price for razor blades. It is using a strategy of​ ___________ pricing. A. by-product B. ​two-part C. product line D. product bundle E. captive-product

captive-product

Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as​ _______________________. A. cash rebates B. psychological pricing C. dynamic pricing D. segmented pricing E. promotional pricing

dynamic pricing

When a college or university charges more for​ out-of-state students than​ in-state students, it is practicing​ ______________________. A. customer-segment pricing B. product form pricing C. promotional pricing D. time-based pricing E. ​location-based pricing

location-based pricing

A car buyer can choose a base model at one​ price, or one with a premium sound and navigation system at a higher price. This is an example of​ _______ pricing. A. optional-product B. captive-product C. product line D. product bundle E. by-product

optional-product

The illegal practice of​ ______________________ is selling below cost with the intention of punishing a competitor or gaining higher​ long-run profits by putting competitors out of business. A. price maintenance B. predatory pricing C. price-fixing D. price discrimination E. deceptive pricing

predatory pricing

The​ Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent​ ______________________. A. predatory pricing B. price-fixing C. deceptive pricing D. price discrimination E. retail price maintenance

price discrimination

When sellers set prices in conjunction or collaboration with one​ another, this illegal practice is known as​ _______________. A. ​price-fixing B. deceptive pricing C. retail price maintenance D. predatory pricing E. price discrimination

price-fixing

Bath​ & Body Works uses​ _____________ pricing when the company offers​ "three-fer" deals on its products​ (such as​ soaps, lotions, and​ moisturizers). A. product line B. by-product C. two-part D. product bundle E. captive-product

product bundle

The Ford Mustang is offered in several different models. Ford uses​ __________ pricing to determine the price steps between the different models. A. product line B. optional-product C. captive-product D. product bundle E. two-part

product line

When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the​ store, it is practicing​ ___________________ pricing. A. promotional B. segmented C. psychological D. optional-product E. geographical

promotional

Which of the following reverses the usual process of first designing a new​ product, determining its​ cost, and then​ asking, "Can we sell it for​ that?" A. target return pricing B. cost-plus pricing C. target costing D. EDLP E. value-added pricing

target costing

UPS uses​ _________________, which charges different prices for shipping depending on an​ item's destination. The more distant the city where the package is being​ shipped, the higher the price UPS charges. A. free on board​ (FOB) origin B. base-point pricing C. uniform-delivered pricing D. zone pricing E. ​freight-absorption pricing

zone pricing