chapter quizzes

______ occurs when a seller states prices or price saving that mislead consumers or are not actually available to consumers

deceptive pricing

if the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. what is NOT one of the common pricing objectives?

grabbing international market share

when a college or university charges more for out-of-state students than in-state students, it is practicing _______ pricing

location-based

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(n) ________ new product pricing strategy.

premium pricing

what is true about pricing.

price competition is a core element of our free-market economy

the robinson-patman act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent

price discrimination

______ is a measure of the sensitivity of demand to changes in price

price elasticity

the ford mustang is offered in several different models. ford uses ______ pricing to determine the price steps between the different models.

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

promotional

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

target return pricing

_____ pricing is the opposite of free onboard pricing. here, the company charges the same price plus freight to all customers, regardless of their location

uniform-delivered

_______ is one major objective associated with a market-penetration pricing strategy

winning large market share

adjusting prices in real time to fit individual customer situations, locations, and buying behaviors is known as _______ pricing.

personalized

bath & body works uses _______ pricing when the company offers "three-fer" deals on its products (such as soaps, lotions, and moisturizers).

product bundle

laws prohibit ______, meaning a manufacturer cannot require dealers to charge a specified retail price for its products

resale price maintenance

what reverses the usual process of first designing a new product, determining its cost, the asking, "can we sell it for that?"

target costing

for a market-skimming pricing strategy to make sense, which condition must be present in the market

the costs of producing a smaller volume cannot cancel the advantage of charging more

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?

value-added pricing

americans eat some 9 billion chickens a year but not the feet. but thanks to the huge demand in china, chicken feet are now a huge profit center. perdue sells some $40 million of the otherwise valueless by-product to china annually. this is an example of ______ pricing.

by-product

nintendo makes little or no profit on its swith video game consoles. however, it hopes to more than make up for thin console margins through sales of Switch video games, which yield much higher unit sales and margins. nintendo is using a strategy of ______ pricing.

captive-product

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?

good-value pricing

sale days, early-bird savings, and bonus earnings for store credit-card holders are promotions employed in which type of pricing strategy?

high-low pricing

when, if ever, is price discrimination allowed

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

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 knoq much about wine, she will likely use the price of the wine as a(n) _______

indicator of quality

which is an external factor affecting pricing

the nature of the market