Chapter 11

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?

​market-skimming pricing

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"

Which term refers to prices that buyers carry in their minds and check with when they look at a given​ product?

reference prices

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​ changes?

A drop in price can adversely affect how consumers view the brand.

he 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-segment

Electrowhip, a company that manufacturers blenders and electric​ whisks, has decided to use a market penetration pricing strategy. Which of the​ following, if​ true, proves their decision to be a wise​ one?

Electrowhip operates in a market with many competitors.

.​Multiprint, a printer manufacturing​ firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint​ printers, and no two models share the same specifications. What type of pricing does Multiprint​ use?

captive product pricing

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

have experience with the product

A number of top​ fashion-modeling agencies would most likely be charged with​ ________ for jointly determining what commissions they charge for models.

price fixing