BMGT350 Chapter 9
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.
Of the following, which is true about pricing? A. Federal law is the overriding authority on pricing. B. Price competition is a core element of our free-market economy. Your answer is correct. C. Companies usually are free to charge whatever prices they wish. D. Companies have no obligation to consider broader societal pricing concerns. E. Companies do not need to communicate reasons for price increases to customers.
B
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
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
Adjusting prices in real time to fit individual customer situations, locations, and buying behaviors is known as ________ pricing.
personalized
________ is a measure of the sensitivity of demand to changes in price.
price elasticity
Bath & Body Works uses _________ pricing when the company offers "three-fer" deals on its products (such as soaps, lotions, and moisturizers).
product bundle
The Ford Mustang is offered in several different models. Ford uses __________ pricing to determine the price steps between the different models.
product line
Laws prohibit ________, meaning a manufacturer cannot require dealers to charge a specified retail price for its products.
resale price maintenance
__________ is one major objective associated with a market-penetration pricing strategy.
winning large market share