Chapter 9 Quiz Questions

________ uses buyers' perceptions of what a product is worth as the key to pricing. Competition-based pricing Target return pricing Customer value-based pricing Cost-plus pricing Psychological pricing

Customer value-based pricing

Establishing prices for razor blades that must be used with a razor blade system is known as ________ pricing. by-product product bundle market-penetration captive-product product line

captive-product

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk. Value-added Cost-based Demand-based Good-value Competition-based

cost-based

When demand hardly changes with a small change in the price of a product, the demand for the product is best described as ________. cyclical flexible variable elastic inelastic

inelastic

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? time-based pricing location-based pricing market-penetration pricing product-form pricing market-skimming pricing

location-based pricing

The first Target store opened in 1962. Its initial strategy was to set prices low to attract a large number of buyers quickly and win a large market share. This is referred to as ________. value-added pricing target costing market-penetration pricing market-skimming pricing deceptive pricing

market-penetration pricing

The first generation Apple iPod was introduced in 2001 and sold for $500. The following year a mini version was introduced for $250. Apple initially used a ________ strategy to price their digital music innovation. deceptive target costing predatory market-skimming market-penetration

market-skimming

Which of the following sets the lower limit for a product's pricing? competition profits product costs elements of the product mix consumer perceptions of value

product costs

NerdHerd Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing. product line by-product captive-product product bundle optional-product

product line

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. target costing competition-based value-added cost-based value-based

value-based