Ch. 9 Marketing Set

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

A. Customer​ value-based pricing

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

A. Reduce price

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

A. product bundle

The Ford Mustang is offered in several different models. Ford will use​ __________ pricing to determine the price steps between the different models. A. product line B. captive-product C. product-bundle D. optional-product E. two-part pricing

A. product line

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

A. win a large market share

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

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

C. market-penetration pricing

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. Uniform-delivered pricing B. Base-point pricing C. FOB origin D. Zone pricing E. Freight-absorption pricing

D. Zone Pricing

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

E. Breakeven Pricing

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. If demand is​ inelastic, a small change in price will result in a large change in demand. C. Demand and price are directly related dash- the higher the​ price, the greater the demand. D. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. E. If demand is​ elastic, sellers will consider lowering their price.

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

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

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

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

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

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

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

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. price maintenance B. predatory pricing C. deceptive pricing D. price discrimination E. price fixing

B. predatory pricing

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

B. 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. EDLP pricing B. ​Value-added pricing C. Breakeven pricing D. High-low pricing E. Cost-plus pricing

B. ​Value-added 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. promotional pricing B. ​location-based pricing C. customer-segment pricing D. product form pricing E. time-based pricing

B. ​location-based pricing

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. captive-product B. by-product C. market-skimming D. ​optional-product E. market-penetration

C. market-skimming

​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. value-added pricing B. EDLP C. target costing D. target return pricing E. ​cost-plus pricing

C. target costing

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. by-product C. product-bundle D. optional-product E. captive-product

D. optional product

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. segmented B. promotional C. psychological D. geographical E. optional product

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

C. captive-product

​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. Value-added pricing C. High-low pricing D. Good-value pricing E. Breakeven pricing

D. Good-value pricing

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. a type of segmented pricing B. an indicator of the cost of production C. an indicator of geographic pricing D. an indicator of quality E. a limited time offer

D. an indicator of quality

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. predatory pricing C. deceptive pricing D. price discrimination E. price fixing

E. price fixing