Marketing chapter 9
Competitors are not able to enter the market quickly and undercut the high price
To successfully implement a market-skimming strategy for a new product, which of the following conditions needs to be present?
optional-product
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.
Market-penetration pricing
Which of the following pricing strategies would a company use to attract a large number of buyers quickly and win a large market share?
Customer value-based pricing
Which of the following refers to setting prices based on buyers' perception of value rather than on the seller's cost?
target costing
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?"
Customer perceptions; costs
_______ of the product's value set the ceiling on pricing, while _______ set the floor.
customer and situational
Setting the base price for a product is only the start. The company must then adjust the price to account for ____________________________ differences.
price-fixing
Federal legislation on _________ states that sellers must set prices without talking to competitors.
If demand is elastic, sellers will consider lowering their prices
Which of the following is true regarding the price-demand relationship?
They apply a variety of price adjustment strategies.
How do companies apply pricing strategies to accommodate differences in customer segments and situations?
Price competition
Of the following, which is core element of our free-market economy?
discount and allowance pricing, segmented pricing, psychological pricing
The seven price adjustment strategies are _____, ______, _____, promotional pricing, geographical pricing, dynamic pricing, and international pricing.
customer value-based pricing, cost-based pricing, and competition-based pricing
The three major pricing strategies are ______.
overall marketing strategy, objectives, marketing mix, and other organizational considerations
A company's pricing strategy is affected by internal factors such as ___________________.
product bundle pricing
Combining products for one price can promote the sales of products consumers might not otherwise buy, but the combined price must be low enough to get them to buy the package. This is known as ______.
Buyer and competitor reactions
Companies have to think carefully when considering price changes. They must consider which of the following?
the nature of the market and demand and environmental factors
External factors when considering pricing include ________________________________ such as the economy, reseller needs, and government actions.
Value-added pricing
New, premium movie theatres 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?
Penetration pricing
Of the following, which is NOT one of the product-mix pricing situations?
deceptive pricing
One form of ______ involves bogus reference or comparison prices, as when a retailer sets artificially high "regular" prices and then announces "sale" prices close to its previous everyday prices.
introductory
Pricing strategies usually change as a product passes through its life cycle but are especially challenging during the _______ stage.
captive-product
Printer companies often charge a fairly low price for their inkjet printers (relative to costs) and a high price for replacement cartridges. These companies are using a strategy of ___________ pricing.
an indicator of quality
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 ________.
predatory pricing
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.
