Chapter 11 (EA)
To combat a competitor's price cut or lower-priced store brands, a national brand such as Luvs disposable diapers was launched along with P&G's flagship brand of disposable diapers, Pampers. Which type of brand is Luvs considered to be in this case? A. Fighter brand B. Flanker brand C. Every-day low prices (EDLP) D. Co-brand E. Cash cow brand
Fighter brand
In the early periods of the introduction of HDTV, the prices were extremely high. The strategy being used is considered to be what? A. Competitive pricing B. Price discrimination C. Price skimming D. Market-penetration pricing E. Target profit pricing
Price skimming
________ are formed by noting current prices, remembering past prices, or assessing the buying situation. A. Seasonal prices B. Time-based prices C. Reference prices D. Product line prices E. Product bundle prices
Reference prices
Which of the following product mix pricing strategies did Polaroid use when it set the general price range of its cameras low and the markup on its film high? A. product-segmented pricing B. product bundling pricing C. captive product pricing D. customer-segmented pricing E. by-product pricing
captive product pricing
Freight-absorption pricing is used for ________. A. generating customer buzz about new products B. generating quick profits to offset input costs C. penetrating international markets D. maintaining quality service records E. holding on to increasingly competitive markets
holding on to increasingly competitive markets
________ allowances are payments or price reductions that reward dealers for participating in advertising and sales support programs. A. Trade-in B. Promotional C. Segmented D. Dynamic E. Functional
promotional
A market-penetration pricing policy should LEAST likely be used for a new product when ________. A. the product's quality and image support a high price B. a high price helps keep out the competition C. there are few or no competitors in the market D. production and distribution costs fall as sales volume increases E. the market is highly price sensitive
the product's quality and image support a high price
Marketing managers will temporarily price their products below list price and sometimes even below cost to create buying excitement and urgency. Which one of the following pricing tactics relates to geographic pricing instead of promotional pricing? A. Cash rebate B. FOB-origin pricing C. Limited-time offers D. Promotional discounts E. Special event
FOB-origin pricing
Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive. A. product line B. captive product C. product bundle D. by-product E. optional product
by-product
Which of the following would most likely lead to a company initiating a price increase? A. over-demand B. weakened economy C. possession of defective merchandise D. possession of outdated merchandise E. excess capacity
over-demand
