Chapter 20

The manager at Target puts a sign up next to a Samsung audio system that reads "Only $299.99! $60 less than at Best Buy." This is an example of what type of pricing strategy? Random discounting periodic discounting penetration discounting everyday low prices comparison discounting

Comparison discounting

Odd-Even pricing is a cost-based strategy a psychological pricing strategy a rarely used technique competition-based a form of unethical pricing

a psychological pricing strategy

Some grocery stores collect data on competitive prices from their resellers through stores' purchase data by calling their competitors on a quarterly basis by using full-time comparison shoppers

by using full-time comparison shoppers

pricing the basic product in a product line low while pricing related items at a higher level is called price skimming captive pricing price lining premium pricing bait pricing

captive pricing

If local Shell gasoline stations look at BP stations' prices as the primary method of determining its own prices, Shell is using ___ Competition-based pricing, which considers costs to be less important than competitor's prices competition-based pricing, which considers profit to be the ultimate pricing goal pricing fixing; which considers competition to be less important than costs price fixing; which considers costs to be less important than competitor's prices market-share pricing; which considers costs to be less important than competitor's prices

competition-based pricing; which considers costs to be less important than competitor's prices

For custom-made equipment or commercial construction projects, which pricing method is most likely used? return-on-investment prestige premium cost-plus differential

cost-plus

the three primary bases for developing prices are negotiation, periodicity, and randomness markup, cost, and cost-plus profit, demand, and competition demand, competition, and cost supply, demand, and marketing objectives

demand, competition, and cost

if a product is priced based on how many or how few people want it at a particular time and place, ____ pricing is being used demand-based competitive peak differential markup

demand-based

When establishing prices, a marketer's first step is to determine a pricing method develop pricing objectives select a pricing policy determine demand evaluate competitors' prices

develop pricing objectives

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ___ pricing price-line professional differential promotional psychological

differential

A product is a price leader when its price maximizes profits an increase or decrease in price leads to increased revenue or lower costs it is sold at the highest price it is sold at less than cost in the hope that sales of other products will increase its price leads the industry in sales

it is sold at less than cost in the hope that sales of other products will increase

Under Armour is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales. product quality status quo survival market share return on investment

market share

Wet Seal, a retailer of swimwear, employs a commonly used cost-based pricing method called cost discounting markup pricing cost-plus pricing differential pricing value pricing

markup pricing

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use penetration pricing captive pricing everyday low prices random discounting price skimming

penetration pricing

the newest version of a product like Bose headphones is likely to use ___, while the new version of Red Bull is likely to use ____ psychological pricing; penetration pricing price skimming; penetration pricing price skimming; promotional pricing price skimming; psychological pricing penetration pricing; price skimming

price skimming; penetration pricing

The pricing of Clinique makeup considerably higher than brands such as Cover Girl, Revlon, and Maybelline is used to communicate ___________ , which is the company's primary pricing objective. market share status quo profitability cash flow product quality

product quality

Services that are performed by lawyers, dentists, or doctors are typically priced using ____; sometimes these prices are not based on the amount of time that is spent in each situation, but are based on a flat fee regardless of the difficulty involved. Traditional pricing professional pricing price lining customary pricing everyday low prices

professional pricing

If a business decides to reduce its prices once in a while on an unsystematic basis, it is using periodic discounting price reduction planning penetration pricing bait pricing random discounting

random discounting

Markup is measured either as a percentage of ____ or a percentage of ___. resources used; cost cost; profit selling price; cost revenue; contribution margin demand; competition

selling prices; cost

What type of pricing objective would an organization use if it were in a favorable position and desired nothing more? profit status quo cash flow survival return on investment

status quo