Chapter 11 Set

To combat a​ competitor's price cut or​ lower-priced store​ brands, a national brand such as Luvs disposable diapers was launched along with​ P&G's flagship brand of disposable​ diapers, Pampers. Which type of brand is Luvs considered to be in this​ case?

Fighter brand

Which of the following product mix pricing strategies involves pricing additional or accessory products sold along with the main​ product?

Optional product pricing

Bill goes to a sporting goods store several times and spends a considerable amount of time checking out golf​ clubs, taking practice swings with​ them, and asking the sales staff questions. He compares​ prices, and then goes home and buys a set online at a lower price.​ Bill's behavior is called​ what?

Showrooming

Amazon developed the Kindle electronic book reader and sells it at a reasonably low margin. The firm uses which pricing strategy to capture additional profits through the sale of easily downloaded online books and​ magazines?

captive product pricing

Which of the following product mix pricing strategies did Polaroid use when it set the general price range of its cameras low and the markup on its film​ high?

captive product pricing

The New Age Gallery has three admission prices for​ students, adults, and​ seniors, even though all three groups are entitled to the same services. This form of pricing is called​ ________ pricing.

customer segmented

Which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume​ purchases, paying​ early, or participating in​ sales-support programs?

discount and allowance pricing

The Internet offers​ ________, where the price can easily be adjusted to meet changes in demand.

dynamic pricing

Consumers are less likely to use price to judge the quality of a product when they​ ________.

have experience with the product

Companies introducing a new product can choose between two broad strategies. One is​ market-skimming pricing. Which of the following is an alternative​ strategy?

market penetration pricing

When Bic introduced disposable​ razors, the product and market met several criteria for using​ ________ pricing. The market was price​ sensitive, and there were substantial economies of scale in distribution and production.

market skimming

Which of the following product mix pricing strategies involves pricing multiple products to be sold​ together?

product bundle pricing

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

promotional

Hearth​ & Home, a store which sells household​ products, has announced a​ one-week sale on its new carpet line. This is an example of​ ________.

promotional pricing

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and​ urgency?

promotional pricing

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

Which of the following would most likely lead to a company initiating a price​ increase?

​over-demand