Marketing Ch9 Quiz

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

Breakeven pricing

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

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

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. ​Break-even pricing B. ​Good-value pricing C. ​Cost-based pricing D. ​High-low pricing E. ​Value-added pricing

Good-value pricing

_ is one major objective associated with a​ market-penetration pricing strategy. A. Attracting buyers willing to pay a higher price B. Preventing customer dissatisfaction C. Skimming off small but profitable market segments D. Avoiding everyday low pricing E. Winning large market share

Winning large market share

Roshika 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. a​ limited-time offer D. an indicator of geographic pricing E. an indicator of quality .

an indicator of quality

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

Customer​ value-based pricing

Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as​ _______________________. A. psychological pricing B. promotional pricing C. segmented pricing . D. dynamic pricing E. cash rebates

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

optional-product

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

predatory pricing

The Ford Mustang is offered in several different models. Ford uses​ __________ pricing to determine the price steps between the different models. A. product bundle B.term-3 ​two-part C. ​captive-product D. ​optional-product E. product line

product line

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

target costing

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

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

Which of the following is true regarding the​ price-demand relationship? A. If demand is​ inelastic, a small change in price will result in a large change in demand. B. If demand is​ elastic, sellers will consider lowering their prices. C. Price elasticity measures how responsive price will be to a change in demand. D. Demand and price are directly related long dash —the higher the​ price, the greater the 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.

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

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, the nature of the​ market, and demand D. The​ company's overall marketing​ strategy, objectives, and the nature of the market E. The​ company's overall marketing​ strategy, objectives, and demand

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

Value-added pricing

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

captive-product

When a college or university charges more for​ out-of-state students than​ in-state students, it is practicing​ ______________________. A. ​customer-segment pricing B. ​location-based pricing C. ​time-based pricing D. promotional pricing E. product form pricing

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

market skimming

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

market-penetration pricing

Bath​ & Body Works uses​ _____________ pricing when the company offers​ "three-fer" deals on its products​ (such as​ soaps, lotions, and​ moisturizers). A. ​captive-product B. product line C. ​two-part D. product bundle E. ​by-product

product bundle

When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the​ store, it is practicing​ ___________________ pricing. A. promotional B. psychological C. geographical D. ​optional-product E. segmented

promotional