Ch.9 MKT Study questions

Maragaret 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________

An indicator of quality

Which of the following is a cost-oriented pricing aproach

Breakeven pricing

Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. it is using a strategy of_________ pricing

Captive-product

Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality. what pricing strategy is sadie using

Good-Value pricing

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

If demand is elastic, sellers will consider lowering their price

Which of the following is a potentially effective action a company could take in response to a competitor's price cuts?

Reduce prices

Internal factors that affect pricing include________

The company's overall marketing strategy, objectives, and marketing mix

One major objective associated with a market-penetration pricing strategy is to________

Win a large market share

UPS charges different prices for shipping on an item;s destination. The more distant the city the package is being shipped to, the higher the price shipping charges. Which geographic pricing method is UPS using.

Zone pricing

Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which form of segmented pricing are these schools using?

location-based pricing

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

optional-product

Bath & Body Works offers "Three-fer" deals on its soaps and lotion. This is an example of _________ pricing

product-bundle

Which of the following statements is true regarding initiating price cuts?

Cutting prices in an industry loaded with excess capacity may lead to price wars.

Companies that use_______ continually adjust prices to meet the characteristics and needs of individual customers and situations

Dynamic pricing

Which of the following statements is true regarding oligopolistic competition

Each seller is alert and responsive to competitors' pricing strategies and marketing moves

New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest sound, super-wide screens, and other amenities. this is an example of which type of pricing?

Value-added pricing

Which of the following statements is true regarding initiating price increases?

Whenever possible, the company should consider ways to meet higher costs or demand without raising prices.

_____ refers to setting price based on buyers' perception of value rather than on the seller's cost

Customer value-based pricing

A company has set low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers. What pricing strategy should the company use

Market penetration pricing

When apple computer company introduced its iPhone, it priced the new product at $599, considerably higher than either their iPod or competing cellular phone companies. Apple computer was pursing a _________ new product strategy

Market skimming

Selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business is an illegal practice is called________

Predatory pricing

Over the years, U.S. air carriers have been accused numerous times of collusion when setting prices. this illegal practice is called_____________

Price fixing

The Ford Mustangs offered in several different models. Ford will use_____ pricing to determine the price steps between the different models.

Product-line

A retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store. this is an example of_____ pricing

Promotional

Geared2Beer, a craft beer brand, identifies a market segment that is willing to pay premium prices for its craft beer and Geared2Beer has high price. managers then determine the costs to create craft beer that meets the ideal selling price. The company's pricing approach is referred to as

Value-added pricing