mktg 11

which of the following companies uses product bundle pricing?

Panizza, whose combo meals are priced lower than its individual components sold together

Which of the following is true of price skimming?

It can be profitably used when the product's quality and image support its price.

Which of the following is true of product bundle pricing?

It promotes the sale of products that consumers might not otherwise buy.

Which of the following is true of market-penetration pricing?

It results in drawing in large numbers of buyers quickly, winning a large market share.

A supermarket places its store brand of blackberry jam priced at $5 per jar in the fruit preserves aisle, alongside the jam jars of a better known brandwhose products are priced at $8 apiece. Store managers reason that customers are more likely to choose the store brand instead of the better-known brand when they realize the price difference. What price adjustment strategy is evident in the supermarket's reasoning?

psychological pricing

A market-penetration pricing policy should LEAST likely be used for a new product when ________.

the product's quality and image support a high price

Leicestershire Renovations has a history of problems with customers who do not pay their bills on time. Leicestershire Renovations wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. Which of the following forms of pricing would most likely help the firm achieve its goal?

cash discounts

In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut?

launching a "fighter brand"

Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages that do not, even though the cottages and services offered are identical in every other aspect. This form of pricing is called ________ pricing.

location-based

In a bid to attract more customers in a market that has several competitors, Barrymore's Bakery slashed the prices of all its products by 50 percent. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using?

market-penetration pricing

Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per bottle. The company intends to bring the price down to $49 within six months of its release to attract buyers who couldn't afford the initial price. Which of the following pricing strategies is Midnight Magic using?

price-skimming pricing

In return for participating in Honda advertising and sales support programs, Honda dealerships are rewarded with payments or price reductions, which are known as ________.

promotional allowances

Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?

psychological pricing

The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentine's Day is an example of a ________.

seasonal discount