MAR QUIZ #9

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company​ use? A. ​market-penetration pricing B. psychological pricing C. ​market-skimming pricing D. ​captive-product pricing E. product bundle pricing

A

Companies that use​ ________ continually adjust prices to meet the characteristics and needs of individual customers and situations. A. dynamic pricing B. promotional pricing C. segmented pricing D. cash rebates E. psychological pricing

A

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. A. ​captive-product B. ​by-product C. ​product-bundle D. product line E. ​two-part pricing

A

One major objective associated with a​ market-penetration pricing strategy is to​ ________. A. win a large market share B. skim off small but profitable market segments C. avoid everyday low pricing D. attract buyers willing to pay a higher price E. prevent customer dissatisfaction

A

UPS charges different prices for shipping depending on an​ item's destination. The more distant the city the package is being shipped​ to, the higher the price UPS charges. Which geographic pricing method is UPS​ using? A. Zone pricing B. ​Uniform-delivered pricing C. ​Base-point pricing D. ​Freight-absorption pricing E. FOB origin

A

Which of the following statements is true regarding oligopolistic​ competition? A. Each seller is alert and responsive to​ competitors' pricing strategies and marketing moves B. The market consists of many buyers and sellers trading over a range of prices. C. The market consists of many large sellers. D. Many buyers and sellers trade a uniform commodity. E. The market is dominated by one seller.

A

Bath​ & Body Works offers​ "three-fer" deals on its soaps and lotions​ (such as three antibacterial soaps for​ $10). This is an example of​ _______ pricing. A. ​captive-product B. ​product-bundle C. ​two-part pricing D. product line E. ​by-product

B

Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is​ Sadie's using? A. ​High-low pricing B. ​Good-value pricing C. Value added pricing D. ​Cost-based pricing E. Breakeven pricing

B

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 called​ _______. A. price maintenance B. predatory pricing C. price discrimination D. price fixing E. deceptive pricing

B

Over the​ years, U.S. air carriers have been accused numerous times of collusion when setting prices. This illegal practice is called​ _______. A. deceptive pricing B. price discrimination C. price fixing D. predatory pricing E. retail price maintenance

C

Which of the following is a potentially effective action a company could take in response to a​ competitor's price​ cut? A. Launch a​ high-price "fighter​ brand" B. Raise price C. Reduce price D. Decrease perceived value E. Reduce both price and quality.

C

​Geared2Beer, a craft beer​ brand, identifies a market segment that is willing to pay premium prices for its craft​ beer, and Geared2Beer managers select an ideal selling 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​ ________. A. ​cost-plus pricing B. target return pricing C. target costing D. EDLP E. ​value-added pricing

C

​________ refers to setting price based on​ buyers' perception of value rather than on the​ seller's cost. A. ​Value-added pricing B. Cost C. Customer​ value-based pricing D. ​Cost-based pricing E. ​Good-value pricing

C

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. A. ​by-product B. ​captive-product C. ​product-bundle D. ​optional-product E. product line

D

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. A. psychological B. segmented C. optional product D. promotional E. geographical

D

Internal factors that affect pricing include​ ________. A. The​ company's overall marketing​ strategy, objectives and the nature of the market B. the​ company's overall marketing​ strategy, objectives and demand C. The nature of the​ market, demand, and the economy. D. the​ company's overall marketing​ strategy, objectives, and marketing mix E. The​ company's overall marketing​ strategy, the nature of the​ market, and demand.

D

Margaret 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​ ________. A. an indicator of geographic pricing B. an indicator of the cost of production C. a limited time offer D. an indicator of quality E. a type of segmented pricing

D

When Apple Computer Company introduced its​ iPhone, its priced the new product at​ $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a​ ___________________ new product pricing​ strategy. A. ​by-product B. ​market-penetration C. ​optional-product D. ​market-skimming E. ​captive-product

D

Which of the following is a​ cost-oriented pricing​ approach? A. EDLP pricing B. Value added pricing C. ​Competition-based pricing D. Breakeven pricing E. ​High-low pricing

D

Which of the following statements is true regarding initiating price​ increases? A. Prices should be increased when there is a lack of demand. B. Cost inflation is not a factor in price increases. C. Companies do not need to communicate reasons for price increases to customers. D. Wherever​ possible, the company should consider ways to meet higher costs or demand without raising prices. E. Price increases do not impact profits.

D

​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? A. ​Cost-plus pricing B. ​High-low pricing C. EDLP pricing D. ​Value-added pricing E. Breakeven pricing

D

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? A. product form pricing B. promotional pricing C. ​time-based pricing D. ​customer-segment pricing E. ​location-based pricing

E

The Ford Mustang is offered in several different models. Ford will use​ __________ pricing to determine the price steps between the different models. A. ​two-part pricing B. ​captive-product C. ​optional-product D. ​product-bundle E. product line

E

Which of the following is true regarding the​ price-demand relationship? A. If demand is​ inelastic, a small change in price will result in a large change in demand. B. Price elasticity measures how responsive price will be to a change in demand. C. Demand and price are directly related dash- the higher the​ price, the greater the demand. D. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. E. If demand is​ elastic, sellers will consider lowering their price.

E

Which of the following statements is true regarding initiating price​ cuts? A. Cutting price has no effect on costs. B. Firms never cut​ prices; they only raise them. C. If faced with excess​ capacity, a firm should not cut its price. D. When faced with falling​ demand, firms should not cut prices. E. Cutting prices in an industry loaded with excess capacity may lead to price wars.

E