MKT 3501 Quiz 11

Questions a company should consider if a competitor initiates a price change include all of the following EXCEPT​

"How can we improve our​ product?"

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 statements is true concerning new product pricing​ strategies?

For a​ market-skimming strategy to be​ successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.

Which of the following is true of​ FOB-origin pricing?

It is an expensive alternative for customers in distant locations.

Which of the following is true of​ market-penetration pricing?

It results in drawing in large numbers of buyers​ quickly, winning a large market share.

Which of the following is true of product line​ pricing?

The price steps take cost differences between products in the line into account.

For a market​ penetration-price strategy to​ succeed, which of the following is LEAST likely to be​ true?

The strategy can be changed​ quickly, to a​ higher-priced position, with no negative impact.

Pricing strategies tend to change and evolve as the average product passes through its life cycle (T/F)

True

A seller offers a​ ________ to​ trade-channel members who perform certain​ functions, such as​ selling, storing, and record keeping.

functional discount

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

have experience with the product

Gillette charges a fairly low price for their razors​ (relative to​ costs) and a high price for razor blades. They are using a strategy of​ __________ pricing.

​captive-product

Which of the following is NOT true of public policies and​ pricing?

Companies are free to charge whatever prices they wish.

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

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

​__________ occurs when retailers set an artificially high​ "regular price" and then advertise a​ "sale price" which is actually close to their everyday price.

Deceptive pricing

Your textbook chapter illustrates Dynamic Pricing in Real Marketing 11.1 on page​ 317, but there are some very large differences in the sort of Dynnamic Pricing issues discussed there and the ones faced by Hammerpress. These differences show that

Dynamic pricing allows managers to raise or lower prices quickly in response to the needs of individual customers and situations.

Motorzone offers replacement parts for old Volkswagen Beetles. The company calculates shipping charges based on shipping parts from​ Boston, even though some parts actually ship from St. Louis. Motorzone most likely practices​ ________ pricing.

basing-point

A​ market-skimming pricing strategy should NOT be used for a new product when​ ________.

competitors can undercut prices easily

Solar Tanning Salon prices tanning sessions at​ $25 per visit. It also offers seasonal passes for​ $175 that allow the customer to visit the salon multiple times in a year. This is an example of​ a(n) ________

discount

Basic price adjustments known as​ __________ are used to reward customers for certain responses.

discounts and allowances

Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the​ products, customer evaluations of different​ features, and​ competitors' prices?

product line pricing

Low-interest financing and longer warranties are both examples of​ ________ pricing.

promotional

By​ definition, ________ pricing is used when a firm sells a product or service at two or more​ prices, even though the difference in price is not based on differences in cost.

segmented

Companies set not a single​ price, but a pricing​ ________ that covers different items in its line and changes over time as products move through their life cycles.

structure

Cheese makers in Wisconsin sell their leftover brine to local city and county highway​ departments, which use it in conjunction with salt to melt icy roads. Which product mix pricing strategy does this​ represent?

​By-product pricing

Under which type of geographic pricing strategy does each customer take responsibility for the freight charges for the product from the factory to its​ destination?

​FOB-origin pricing