Marketing (HW 5)
In pricing innovative new products, a company can use ________ by initially setting high prices to maximize the amount of revenue from a sufficient number of buyers willing to pay the higher price. A. market-penetration pricing B. market-skimming pricing C. discount pricing D. cost-plus pricing E. profitability pricing
B
_______ of the product's value set the ceiling on pricing, while _______ set the floor. A. Customer perceptions; costs B. Variable costs; fixed costs C. Variable costs; customer-value perceptions D. Fixed costs; customer-value perceptions E. Costs; customer-value perceptions
A
___________ are payments or price reductions that reward dealers for participating in advertising and sales-support programs. A. volume discounts B. trade-in allowances C. promotional allowances D. cash discounts E. quantity discounts
C
Other internal factors that influence pricing decisions include ____________. A. the company's overall marketing strategy, objectives, and marketing mix, as well as organizational considerations B. the company's overall marketing strategy, objectives, and marketing mix C. the company's overall pricing strategy, objectives, and marketing mix, as well as organizational considerations D. the company's overall sales strategy, objectives, and marketing mix, as well as organizational considerations E. the company's overall sales strategy, revenue objectives, and marketing mix, as well as organizational considerations
A
There are several types of product mix pricing situations, which include ______________, by-product pricing, and product bundle pricing. A. product line pricing, optional-product pricing, captive-product pricing B. non-bundling product pricing, optional-product pricing, captive-product pricing C. sales line pricing, optional-product pricing, captive-product pricing D. product line pricing, off-product pricing, captive-product pricing E. product line pricing, mandatory product pricing, captive-product pricing
A
The seven price adjustment strategies are _____, ______, _____, promotional pricing, geographical pricing, dynamic pricing, and international pricing. A. product line pricing, optional-product pricing, captive-product pricing B. discount and allowance pricing, segmented pricing, psychological pricing C. discount and allowance pricing, segmented pricing, penetration pricing D. discount and allowance pricing, segmented pricing, market-skimming pricing E. discount and allowance pricing, segmented pricing, product bundle pricing
B
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. market-penetration B. premium pricing C. captive-product D. optional-product E. by-product
B
Which of the following pricing strategies would a company use to attract a large number of buyers quickly and win a large market share? A. By-product pricing B. Market-penetration pricing C. Market-skimming pricing D. Optional-product pricing E. Captive-product pricing
B
To successfully implement a market-skimming strategy for a new product, which of the following conditions needs to be present? A. The company objective is to initially gain a large market share. B. The company objective is to attract a large number of buyers quickly. C. The quality level of the product does not match the higher price. D. Buyers are not willing to pay the higher price. E. Competitors are not able to enter the market quickly and undercut the high price.
C
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. value-added pricing E. EDLP
C
A company can use _________ by setting a low initial price to penetrate the market deeply and win a large market share. A. market-penetrating pricing B. discount pricing C. market-skimming pricing D. cost-plus pricing E. profitability pricing
A
When Microsoft or Apple sells software as a package, it is engaging in what type of pricing? A. Product bundle pricing B. Two-part product pricing C. Captive-product pricing D. By-product pricing E. Product line pricing
A
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. market-penetration pricing C. psychological pricing D. captive-product pricing E. product bundle pricing
B
A company sets a high price on a new product it introduces to maximize revenue from various market segments. Which new product pricing strategy is the company using? A. Product bundle pricing B. Market-skimming pricing C. Product line pricing D. Captive-product pricing E. Market-penetration pricing
B
For services, there is a form of captive-product pricing known as _____ pricing. A. by-product B. two-part C. product bundle D. optional-product E. product line
B
Bath & Body Works uses _____________ pricing when the company offers "three-fer" deals on its products (such as soaps, lotions, and moisturizers). A. by-product B. captive-product C. product bundle D. two-part E. product line
C
Companies have to think carefully when considering price changes. They must consider which of the following? A. Sales and marketing reactions B. Investor reactions C. Buyer and competitor reactions D. Research and development reactions E. Management reactions
C
In setting its overall pricing strategy, companies need to consider three factors: ______, ______, and ______. A. Domestic customer purchasing habits, costs, and the company's pricing strategies B. Customer purchasing habits, costs, and competitors' pricing strategies C. Customer perceived value, costs, and competitors' pricing strategies D. Customer perceived value, costs, and the company's pricing strategies E. Customer perceived value, vendor perceived value, and competitors' pricing strategies
C
Marketers use three major pricing strategies: ______________________. A. customer value-based pricing, cost-based pricing, and government-based pricing B. demand-based pricing, revenue-based pricing, and government-based pricing C. customer value-based pricing, cost-based pricing, and competition-based pricing D. demand-based pricing, cost-based pricing, and competition-based pricing E. customer value-based pricing, cost-based pricing, and revenue-based pricing
C
Of the following, which is NOT one of the product-mix pricing situations? A. Product line pricing B. Captive-product pricing C. Penetration pricing D. Product bundle pricing E. Optional-product pricing
C
A company's pricing strategy is affected by internal factors such as ___________________. A. overall marketing strategy, objectives, demand, and international considerations B. overall marketing strategy, objectives, and market conditions C. overall marketing strategy, the nature of the market, and demand D. overall marketing strategy, objectives, marketing mix, and other organizational considerations E. the nature of the market, demand, and the economy
D
Laws prohibit ____________, which means a manufacturer cannot require dealers to charge a specified retail price for its product. A. price discrimination B. deceptive pricing C. price-fixing D. retail price maintenance E. predatory pricing
D
Pricing strategies usually change as a product passes through its life cycle but are especially challenging during the _______ stage. A. growth B. decline C. maturity D. introductory E. relaunch
D
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. a type of segmented pricing B. an indicator of the cost of production C. an indicator of geographic pricing D. an indicator of quality E. a limited-time offer
D
Setting the base price for a product is only the start. The company must then adjust the price to account for ____________________________ differences. A. customer and vendor B. vendor and situational C. distribution and channel D. customer and situational E. customer and environmental
D
The Ford Mustang is offered in several different models. Ford uses __________ pricing to determine the price steps between the different models. A. two-part B. captive-product C. optional-product D. product line E. product bundle
D
The illegal practice of selling below cost to harm competitors is known as ______. A. price-fixing B. retail price maintenance C. deceptive pricing D. predatory pricing E. price discrimination
D
When a college or university charges more for out-of-state students than in-state students, it is practicing ______________________. A. customer-segment pricing B. promotional pricing C. product form pricing D. location-based pricing E. time-based pricing
D
________________________ is one major objective associated with a market-penetration pricing strategy. A. Preventing customer dissatisfaction B. Avoiding everyday low pricing C. Attracting buyers willing to pay a higher price D. Winning large market share E. Skimming off small but profitable market segments
D
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. captive-product B. product line C. product bundle D. by-product E. optional-product
E
Price ceilings are set by customer perception. Which of the following sets the floor for the price that a company charges? A. Customers B. Market conditions C. Revenue projections D. Competitors E. Costs
E
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. A. optional-product B. captive-product C. product bundle D. by-product E. product line
B
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. deceptive pricing B. price discrimination C. price-fixing D. retail price maintenance E. predatory pricing
B
Value-based pricing begins with analyzing ___________. A. product attributes and product features B. internal costs and value perceptions C. consumer needs and value perceptions D. product attributes and product perceptions E. market needs and competitors' prices
C
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. geographical B. optional-product C. segmented D. promotional E. psychological
D
Another price adjustment strategy is ______________ pricing, where the company sells a product at two or more prices to accommodate different customers, product forms, locations, or times. A. psychological B. geographical C. promotional D. dynamic E. segmented
E
Of the following, which is core element of our free-market economy? A. Price cuts B. Price competition C. Free trade D. Uniform pricing regulations E. Cost controls
B
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. promotional pricing E. segmented pricing
C
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. Value-added pricing C. Everyday low pricing (EDLP) D. Competition-based pricing E. High-low pricing
A
Beyond the market and the economy, what other factors in its external environment must a company consider when setting prices? A. Resellers, the government, and social concerns B. The company's overall marketing strategy and selecting target markets C. The company's overall marketing strategy and marketing mix D. Setting prices to attract new customers and setting prices to prevent competitors from entering the market E. Who within the organization should set prices and whether or not to have a pricing department
A
External factors when considering pricing include ________________________________ such as the economy, reseller needs, and government actions. A. the nature of the market and demand and environmental factors B. demand and environmental factors C. nature of the market and environmental factors D. global demand, nature of the market, and environmental factors E. domestic demand, nature of the market, and environmental factors
A
How do companies apply pricing strategies to accommodate differences in customer segments and situations? A. They apply a variety of price adjustment strategies. B. They create price allowance pricing strategies. C. They use accommodations such as preferred pricing strategies. D. They use selective promotional pricing strategies. E. They focus on segmented pricing strategies.
A
Which of the following is true regarding the price-demand relationship? A. If demand is elastic, sellers will consider lowering their prices. B. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. C. Demand and price are directly related—the higher the price, the greater the demand. D. If demand is inelastic, a small change in price will result in a large change in demand. E. Price elasticity measures how responsive price will be to a change in demand.
A
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. Value-added pricing B. Breakeven pricing C. High-low pricing D. EDLP E. Cost-plus pricing
A
