Chapter 10 Quiz

The forms of demand-based pricing are ___.

target costing and yield management pricing

When McDonald's introduced their new pie flavor at the introductory price of $.99 for a limited time only, they were practicing which pricing strategy?

trial pricing

Which of the following is NOT a type of pricing objective?

types of pricing objectives: sales or market share profit image enhancement customer satisfaction competitive effect

Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This exemplifies ________.

Cost-plus pricing

A firm is using a(n) ________ strategy when it introduces a product at a very low price to gain market share early on.

penetration pricing

Which of the following is a measure of the sensitivity of customers to changes in price?

price elasticity of demand

___ Is the assignment of value, or the amount a consumer must give to receive a product.

Price

Enforcing laws against ___ is complicated because such practices are similar to the legal practice of "trading up".

bait-and-switch

When setting prices, a company must consider factors in its pricing environment. ___ such as the business cycle, economic growth, and consumer confidence can have a significant impact on the firm's pricing strategies.

economic trends

Which of the following products most likely has inelastic demand?

examples: gas electricity water drinks and clothing tobacco food oil