Marketing Chapter 9
Which of the following statements is true regarding oligopolistic competition?
Each seller is alert and responsive to competitors' pricing strategies and marketing moves
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?
Good-value pricing
How do firms that use captive-product pricing make up for the low prices of their main products?
They set high markups on the captive products
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 ________.
an indicator of quality
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
which of the following sets the upper limit for a product's pricing?
consumer perceptions of value
the local movie theatre has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ____ pricing
customer-segment
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.
market-skimming
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 lotions (such as three antibacterial soaps for $10). This is an example of _______ pricing.
product-bundle
A ___ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth
value-based
Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called ____ costs because the total changes based on the number of units produced
variable
________ refers to setting price based on buyers' perception of value rather than on the seller's cost.
Customer value-based pricing
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?
Value-added pricing
Consumers rely less on price to judge the quality of a product when they ________.
have prior experience with the product
Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called?
location-based 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 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?
market-penetration pricing
Internal factors that affect pricing include ________.
the company's overall marketing strategy, objectives, and marketing mix
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?
Zone pricing
Companies that use ________ continually adjust prices to meet the characteristics and needs of individual customers and situations.
dynamic pricing
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
In ____, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities
pure competition
Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing.
value-added
costs that change directly with the level of production are referred to as ____ costs
variable
One major objective associated with a market-penetration pricing strategy is to ________.
win a large market share
