Marketing Chapter 9 Quiz

Internal factors that affect pricing include​ ________. A. the​ company's overall marketing​ strategy, objectives, and marketing mix B. The nature of the​ market, demand, and the economy. C. The​ company's overall marketing​ strategy, objectives and the nature of the market D. The​ company's overall marketing​ strategy, the nature of the​ market, and demand. E. the​ company's overall marketing​ strategy, objectives and demand

A. the​ company's overall marketing​ strategy, objectives, and marketing mix

​New, premium movie theaters offer features such as online reserved​ seating, high-backed leather executive chairs with armrests and​ footrests, the latest in digital​ sound, super-wide​ screens, and other amenities for which they charge a higher price. This is an example of which type of​ pricing? A. ​Value-added pricing B. EDLP pricing C. ​High-low pricing D. Breakeven pricing E. ​Cost-plus pricing

A. ​Value-added pricing

________ refers to setting price based on​ buyers' perception of value rather than on the​ seller's cost. A. ​Value-added pricing B. Customer​ value-based pricing C. Cost D. ​Cost-based pricing E. ​Good-value pricing

B. Customer​ value-based pricing

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

B. ​product-bundle

Which of the following is a​ cost-oriented pricing​ approach? A. ​Competition-based pricing B. EDLP pricing C. Breakeven pricing D. Value added pricing E. ​High-low pricing

C. Breakeven pricing

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. ​two-part pricing C. product line D. ​optional-product E. ​product-bundle

C. product line

A retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store. This is an example of​ _________ pricing. A. psychological B. geographical C. promotional D. optional product E. segmented

C. promotional

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

D. ​captive-product

Which of the following statements is true regarding initiating price​ cuts? A. Cutting price has no effect on costs. B. When faced with falling​ demand, firms should not cut prices. C. Firms never cut​ prices; they only raise them. D. If faced with excess​ capacity, a firm should not cut its price. E. Cutting prices in an industry loaded with excess capacity may lead to price wars.

E. Cutting prices in an industry loaded with excess capacity may lead to price wars.

UPS charges different prices for shipping depending on an​ item's destination. The more distant the city the package is being shipped​ to, the higher the price UPS charges. Which geographic pricing method is UPS​ using? A. FOB origin B. ​Base-point pricing C. ​Uniform-delivered pricing D. ​Freight-absorption pricing E. Zone pricing

E. Zone pricing

Selling below cost with the intention of punishing a competitor or gaining higher​ long-run profits by putting competitors out of business is an illegal practice called​ _______. A. deceptive pricing B. price maintenance C. price fixing D. price discrimination E. predatory pricing

E. predatory pricing

Which of the following statements is true regarding oligopolistic​ competition? A. Each seller is alert and responsive to​ competitors' pricing strategies and marketing moves B. The market consists of many large sellers. C. Many buyers and sellers trade a uniform commodity. D. The market is dominated by one seller. E. The market consists of many buyers and sellers trading over a range of prices.

A. Each seller is alert and responsive to​ competitors' pricing strategies and marketing moves

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about​ wine, she will likely use the price of the wines as​ ________. A. an indicator of quality B. a limited time offer C. an indicator of the cost of production D. an indicator of geographic pricing E. a type of segmented pricing

A. an indicator of quality

Which of the following is true regarding the​ price-demand relationship? A. Price elasticity measures how responsive price will be to a change in demand. B. Demand and price are directly related dash- the higher the​ price, the greater the demand. C. If demand is​ elastic, sellers will consider lowering their price. D. If demand is​ inelastic, a small change in price will result in a large change in demand. E. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged.

C. If demand is​ elastic, sellers will consider lowering their price.

Which of the following is a potentially effective action a company could take in response to a​ competitor's price​ cut? A. Raise price B. Launch a​ high-price "fighter​ brand" C. Reduce price D. Decrease perceived value E. Reduce both price and quality.

C. Reduce price

Which of the following statements is true regarding initiating price​ increases? A. Prices should be increased when there is a lack of demand. B. Price increases do not impact profits. C. Wherever​ possible, the company should consider ways to meet higher costs or demand without raising prices. D. Cost inflation is not a factor in price increases. E. Companies do not need to communicate reasons for price increases to customers.

C. Wherever​ possible, the company should consider ways to meet higher costs or demand without raising prices.

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

C. win a large market share

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

C. ​market-skimming

Companies that use​ ________ continually adjust prices to meet the characteristics and needs of individual customers and situations. A. psychological pricing B. cash rebates C. segmented pricing D. promotional pricing E. dynamic pricing

E. dynamic pricing

Over the​ years, U.S. air carriers have been accused numerous times of collusion when setting prices. This illegal practice is called​ _______. A. retail price maintenance B. deceptive pricing C. price discrimination D. predatory pricing E. price fixing

E. price fixing

​Geared2Beer, a craft beer​ brand, identifies a market segment that is willing to pay premium prices for its craft​ beer, and Geared2Beer managers select an ideal selling price. Managers then determine the costs to create craft beer that meets the ideal selling price. The​ company's pricing approach is referred to as​ ________. A. ​cost-plus pricing B. target return pricing C. EDLP D. ​value-added pricing E. target costing

E. target costing

​Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is​ Sadie's using? A. ​Cost-based pricing B. ​High-low pricing C. Breakeven pricing D. Value added pricing E. ​Good-value pricing

E. ​Good-value pricing

Many state colleges and universities charge one price for​ in-state students and a higher price for​ out-of-state students. Which form of segmented pricing are these schools​ using? A. product form pricing B. ​customer-segment pricing C. ​time-based pricing D. promotional pricing E. ​location-based pricing

E. ​location-based pricing

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. psychological pricing B. ​captive-product pricing C. product bundle pricing D. ​market-skimming pricing E. ​market-penetration pricing

E. ​market-penetration pricing

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

E. ​optional-product