MKTG CH-11

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

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

A

Market penetration prices are preferred in all of the following conditions except​ __________. A. enough buyers must want the product at a higher price B. the market must be highly price sensitive so that a low price produces more market growth C. the production and distribution costs must decrease as sales volume increases D. the low price must help keep out the competition E. the penetration price must maintain its​ low-price position

A

Which of the following statements is true concerning new product pricing​ strategies? A. 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. B. When using a​ market-skimming strategy, marketers do not need to focus on the​ product's quality and image. C. If competitors can easily enter the​ market, a​ market-skimming strategy should be used. D. A​ market-penetration strategy should be used if the market is not highly price sensitive. E. For a market penetration strategy to​ work, production and distribution costs must increase as sales volume increases.

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

B

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

B

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

B

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. ​Captive-product pricing B. Psychological pricing C. ​Market-penetration pricing D. ​Market-skimming pricing E. Product bundle pricing

C

Companies that make products that must be used along with a main product are using​ __________. A. product bundle pricing B. ​optional-product pricing C. ​captive-product pricing D. product line pricing E. ​by-product pricing

C

Market skimming prices are preferred in all of the following conditions except​ __________. A. the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more B. competitors should not be able to enter the market easily and undercut the high price C. an initial low price is set by the companies D. the​ product's quality and image must support its higher price E. enough buyers must want the product at that price

C

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

C

The pricing method in which sellers combine several products and offer a reduced price is known as​ __________. A. ​captive-product pricing B. ​optional-product pricing C. product line pricing D. ​by-product pricing E. product bundle pricing

E