IBM CH. 11 SB

As a pricing tactic, a marketer decides to add 10% to the price of the product to arrive at the final selling price. This is an example of _______ pricing

cost-plus

The central focus of determining what pricing tactic to use should be the _______.

customer

The most common examples of _______ pricing involve firms that falsely advertise wholesale pricing or promise a significant price reduction on an artificially high retail price.

deceptive

A retailer inflated the price of its dining room sets so that when it put them on sale, it appeared to customers that they were getting a better deal than they really were. In doing so, the retailer was engaged in _______.

deceptive pricing

The price-setting process begins with _____.

defining the pricing objectives

In the price-setting process, after demand has been evaluated, the next step is to _____.

determine the costs

A pricing tactic that involves selling a product at a price that causes the firm a financial loss is called _______.

loss-leader pricing

Firms using _______ hope that customers will buy other items in the store that are more profitable.

loss-leader pricing

Marketers typically prefer targeting international markets with ___ (lower/higher) tariffs.

lower

As an element of evaluating demand for a product, ___ ___ can be defined as the change in total cost that results from producing one additional unit of product.

marginal cost

In an industry in which a small number of firms compete, firms will typically _______.

match the price of competitors

Similar to a firm's marketing objectives, its pricing objectives should be _______. (check all that apply.)

measurable specific

___ pricing is a strategy in which a firm prices a product a few cents below the next dollar amount.

odd

According to recent research, approximately what percentage of consumers search for and purchase a low-priced product using an in-store shopping app or online search engine?

40%

There are ___ steps in the price-setting process.

6

In which of the following strategies would companies most likely use data management systems to provide marketers with more data and enhanced ways of estimating price elasticity?

Dynamic pricing

Which of the following price discrimination scenarios are legal under the Robinson-Patman Act? (Check all that apply.)

Charging different prices as a result of a going-out-of-business sale Promising to match competitor's prices if the consumer produces proof of the lower price Charging different prices if it is part of a quantity discount program

___ pricing tactics can lead to price confusion, where customers have difficulty discerning what they are actually paying because they have been misled by price promotions.

Deceptive

True or false: The World Trade Organization has classified the practice of dumping as illegal.

False

What factors have made global pricing more transparent and, in many cases, more competitive in recent times? (Check all that apply.)

Growing Internet access Technological advancements

What considerations should marketers take into account when determining which pricing tactic to use? (Check all that apply.)

How customers' intend to use the product The customers' ability to pay The value customers perceive the product to have

According to your text, what has been the outcome for marketers pricing products now that consumers have access to mobile applications while shopping?

Marketers must aggressively review the prices of online stores when setting the initial price of an item.

When it comes to setting prices, which of the following stakeholders would be most interested in setting prices high across all product lines in order to increase profits for the firm?

Marketing executives

What pricing tactic involves adding a certain amount to the cost of a product to set the final selling price?

Markup pricing

Websites like eBay and priceline.com are types of _______.

NYOP auctions

___ pricing is the practice of first setting prices low with the intention of pushing competitors out of the market or keeping new competitors from entering the market, and then raising prices to normal levels.

Predatory

Because it directly impacts the financial viability of both organizations and individuals, activities related to which marketing mix element are watched and regulated most closely?

Price

Which of the following are ethical issues marketers may face as they seek to set prices for their products? (Check all that apply.)

Price fixing Price discrimination Predatory pricing

How should pricing strategies be addressed during the product life cycle?

Pricing strategies evolve and should be reevaluated throughout the product life cycle.

Which of the following are common pricing objectives a firm would seek to utilize? (Check all that apply.)

Profit maximization Survival pricing Volume maximization

_______ are price reductions given to customers purchasing goods or services out of season.

Seasonal discounts

___ are taxes on imports and exports between countries.

Tariffs

In addition to technological and economic factors, which of the following are unique challenges related to global pricing for firms seeking to increase their revenue and profits? (Check all that apply.)

The gray market Tariffs Dumping

In the past, how have companies set prices for products sold internationally compared to the same products sold domestically?

They have set the prices higher for products sold internationally.

What is the goal for marketers in determining the cost of a product?

To make sure they will not lose money by pricing the product too low

Technology has helped to shift the balance of power from ___ to ___ .

companies; customers

Which of the following factors influencing price are often overlooked? (Check all that apply.)

Underpricing Reference prices

The name-your-own-price strategy is best compared to a(n) _______.

auction

Price ___ is a strategy in which two or more products are packaged together and sold at a single price.

bundling

Price ___ is only illegal if it injures the competition.

discrimination

A strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market is referred to as ___ .

dumping

The removal of tariffs due to international agreements has caused countries to enact anti- ___ laws to protect their local industries.

dumping

A Broadway theater production that tries to fill empty seats by lowering the price as the day of the production draws closer is using _______.

dynamic pricing

What are the two most common and effective strategies for raising prices?

escalator clauses unbundling

Firms that want to promote an image of _______ to customers would most likely pursue a strategy of prestige pricing.

exclusivity

In a market structure in which there are a large number of buyers and sellers, the pricing impact of any single firm will be _____.

fairly small

A firm that takes branded products and sells them through legal, but unauthorized, distribution channels is participating in the ___ market.

gray

If a company prices its products significantly lower in foreign countries than in the domestic market, they may be subject to ___ ___ buyers who will purchase the products internationally and then sell them in the United States for a much lower price than the normal market price.

gray market

Prestige pricing involves pricing a product ___ than competitors.

higher

Callie notices that most items sold in the "As Seen on TV" store are priced a few cents below the next whole dollar amount, that is, $14.95 instead of $15.00, or $19.95 instead of $20.00. What type of pricing tactic does this represent?

odd pricing

A new 7-11 opened up across the street from Tanner's, a locally owned convenience store. 7-11 has drastically reduced the prices on many of the same items that Tanner's sells, forcing the store to go out of business. After Tanner's closed, the 7-11 began raising its prices to more normal levels. This is an example of _______.

predatory pricing

___ ___ could be considered an attempt to create a monopoly and is, therefore, illegal under U.S. law.

predatory pricing

After determining the costs and analyzing the competitive price environment, the next step in the price-setting process is to choose a(n) ___ .

price

Regardless of the type of product, the ___ of a product typically factors into a consumer's decision on what to purchase and is part of almost every consumer decision a person makes.

price

While shopping for cable television services, Brett found that if he ordered the package that included basic cable, HBO, Showtime, Redzone, and the MLB Network he could get a better price than if he just ordered basic cable alone. This strategy of packaging products together and selling them at a single price is called ___ ___ .

price bundling

Jess owns a deli restaurant in a downtown area that is close to a college campus. Even though she gets a lot of her lunchtime business from the downtown merchants, she has decided to offer students a discount for the same menu items she sells to everyone else. This is an example of _______.

price discrimination

If the major airline companies colluded to make consumers pay an additional $50 to be able to carry on luggage, this would be an example of _______.

price fixing

___ ___ is when two or more companies collude to set a product's price.

price fixing

If you were willing to pay $10 for a product, but the firm only charges you $8, the firm will most likely see a reduction in _______.

profit

The Robinson-Patman Act was passed in 1936 and _______.

requires sellers to charge the same price for a product

According to traditional economic theory, setting price is as simple as finding the point at which marginal ___ equals marginal ___ .

revenue; cost

A hotel resort in Florida prices its rooms differently for different times of the year. In particular, it promotes the months of August and September as its "value" months where the room prices are at their lowest rates. It does this, in part, because the weather in Florida is not as favorable as it is at other times of the year. The pricing tactic the hotel is using to promote hotel stays during the "value" months is most likely ______.

seasonal discounts

The effect that technology has had on pricing could be called _______.

significant