AGBU 4340 Chapter 11

Which of the following companies uses product bundle pricing?

Panizza, whose combo meals are priced lower than its individual components sold together

Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive.

by-product

Which of the following product mix pricing strategies involves pricing products that can only be used with the main product?

captive product pricing

The 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

In a bid to attract more customers in a market that has several competitors, Barrymore's Bakery slashed the prices of all its products by 50 percent. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using?

market-penetration pricing

When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the ________ pricing strategy.

market-skimming

Which of the following product mix pricing strategies involves pricing additional or accessory products sold along with the main product?

optional-product pricing

Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most likely guilty of ________.

predatory pricing

When sellers set prices after talking to competitors and engaging in collusion, they are involved in ________.

price fixing

Price discrimination is legal when a ________.

seller can prove its costs are different when selling to different retailers