BUAD 332 Exam 3

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.

Captive-product

What are the product-mix pricing situations?

Captive-product pricing, optional-product pricing, product line pricing, and product bundle pricing

To successfully implement a​ market-skimming strategy for a new​ product, which of the following conditions needs to be​ present?

Competitors are not able to enter the market quickly and undercut the high price.

Price ceilings are set by customer perception. Which of the following sets the floor for the price that a company​ charges?

Costs

In setting its overall pricing​ strategy, companies need to consider three​ factors: ______,​ ______, and​ ______.

Customer perceived​ value, costs, and​ competitors' pricing strategies

​_______ of the​ product's value set the ceiling on​ pricing, while​ _______ set the floor.

Customer​ perceptions; costs

Which of the following is true regarding the​ price-demand relationship?

If demand is​ elastic, sellers will consider lowering their prices.

Which of the following pricing strategies would a company use to attract a large number of buyers quickly and win a large market​ share?

Market-penetration pricing

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?

Market-skimming pricing

Of the​ following, which is NOT one of the​ product-mix pricing​ situations?

Penetration pricing

Beyond the market and the​ economy, what other factors in its external environment must a company consider when setting​ prices?

Resellers, the​ government, and social concerns

Marketers must consider external considerations in establishing pricing. Which of the following represents those external​ considerations?

The nature of the market and demand and other environmental factors

How do companies apply pricing strategies to accommodate differences in customer segments and​ situations?

They apply a variety of price adjustment strategies.

When companies treat customers fairly and make certain they understand pricing and pricing​ terms, this leads to​ ________________.

building strong and lasting customer relationships

Companies have to think carefully when considering price changes. They must consider which of the​ following?

buyer and competitor reactions

​Value-based pricing begins with analyzing​ ___________.

consumer needs and value perceptions

Marketers use three major pricing​ strategies: ______________________.

customer​ value-based pricing,​ cost-based pricing, and​ competition-based 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.

deceptive pricing

The seven price adjustment strategies are​ _____, ______,​ _____, promotional​ pricing, geographical​ pricing, dynamic​ pricing, and international pricing.

discount and allowance​ pricing, segmented​ pricing, psychological pricing

A​ company's pricing strategy is affected by internal factors such as​ ___________________.

overall marketing​ strategy, objectives, marketing​ mix, and other organizational considerations

​Occupation, age, and lifestyle are​ _________ factors that influence consumer buyer behavior.

personal

The illegal practice of selling below cost to harm competitors is known as​ ______.

predatory pricing

Of the​ following, which is core element of our​ free-market economy?

price competition

Federal legislation on​ _________states that sellers must set prices without talking to competitors.

price-fixing

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​ ______.

product bundle pricing

There are several types of product mix pricing​ situations, which include​ ______________, by-product​ pricing, and product bundle pricing.

product line​ pricing, optional-product​ pricing, captive-product pricing

​___________ are payments or price reductions that reward dealers for participating in advertising and​ sales-support programs.

promotional allowances

For​ services, there is a form of​ captive-product pricing known as​ _____ pricing.

two-part

Setting the base price for a product is only the start. The company must then adjust the price to account for​ ____________________________ differences.

customer and situational

Pricing strategies usually change as a product passes through its life cycle but are especially challenging during the​ _______ stage.

introductory

Laws prohibit​ ____________, which means a manufacturer cannot require dealers to charge a specified retail price for its product.

retail price maintenance

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.

segmented