marketing chapter 11
Which of the following describes zone pricing?
A geographical pricing strategy in which the company sets up two or more designated areas
Which of the following describes cost inflation?
A situation in which rising costs squeeze profit margins and lead companies to pass cost increases along to customers
__________ is setting a price for by-products in order to make the main product's price more competitive.
By-product pricing
Which of the following describes product bundle pricing?
Combining several products and offering the bundle at a reduced price
__________ occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.
Deceptive pricing
__________ is a pricing strategy in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination.
FOB-origin pricing
__________ is setting prices for customers located in different parts of the country or world.
Geographical pricing
________ is setting a low price for a new product in order to attract a large number of buyers and large market share.
Market-penetration pricing
__________ is setting a price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales
Market-skimming pricing
Which of the following describes deceptive pricing?
Occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers
Which of the following describes psychological pricing?
Pricing that considers the psychology of prices and not simply the economics; the price is used to say something about the product
________ is setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices.
Product line pricing
__________ is selling a product or service at two or more prices, where the difference in prices is not based on differences in costs.
Segmented pricing
What is predatory pricing?
Selling below cost with the intention of punishing a competitor
__________ is a geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location.
Uniform-delivered pricing
__________ is a geographical pricing strategy in which the company sets up two or more designated areas
Zone pricing
FOB-origin pricing is __________.
a geographical pricing strategy in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination
A discount is best defined as __________.
a straight reduction in price on purchases during a stated period of time or in larger quantities
Which of the following describes dynamic pricing?
adjusting prices continually to meet the characteristics and needs of individual customers and situations
Market skimming prices are preferred in all of the following conditions except __________.
an initial low price is set by the companies
Setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console, is __________ pricing.
captive-product
Market penetration prices are preferred in all of the following conditions except __________.
enough buyers must want the product at a higher price
The pricing method in which sellers combine several products and offer a reduced price is known as __________.
product bundle pricing
What is an allowance?
promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way
Some sellers use 00-cent endings on regularly priced items and 99-cent endings on discount merchandise. This is an example of pricing referred to as __________.
psychological pricing
Techniques that can be used by sellers for avoiding customers' perception of price gouging includes all of the following except __________.
rationing products to customers
In __________pricing, the company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs.
segmented
What is segmented pricing?
selling a product or service at two or more prices, where the difference in prices is not based on differences in costs
Market-skimming pricing is best defined as________.
setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales
By-product pricing is __________.
setting a price for by-products in order to make the main product's price more competitive
What does geographical pricing entail?
setting prices for customers located in different parts of the country or world
Promotional pricing is __________.
temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales
Optional-product pricing is ________.
the pricing of optional or accessory products along with a main product
Basing-point pricing is __________.
a geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer
Optional-product pricing is __________.
the pricing of optional or accessory products along with a main product
Companies that make products that must be used along with a main product are using __________.
captive-product pricing
Techniques that can be used by sellers for avoiding customers' perception of price gouging includes all of the following except __________.
low-price fighter items
Federal legislation on __________ states that sellers must set prices without talking to competitors.
price-fixing