Marketing Chapter 9

________ refers to setting price based on​ buyers' perception of value rather than on the​ seller's cost. a) Customer​ value-based pricing b) Value-added pricing c) Cost d) Cost-based pricing e) Good-value pricing

Customer value-based pricing

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

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

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) Breakeven pricing b) Cost-based pricing c) Value added pricing d) Good-value pricing e) High-low pricing

Good-value pricing

In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities. a) pure competition b) monopolistic competition c) oligopolistic competition d) a pure monopoly e) a pure monopsony

Pure competition

Consumers rely less on price to judge the quality of a product when they ________. a) lack information about the product b) are unable to research the product c) have prior experience with the product d) are unable to judge the quality of the product e) rely on cues from sellers to differentiate a high or low price

Rely on cues from sellers to differentiate a high or low price

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 line b) captive-product c) two-part pricing d) product-bundle e) by-product

captive-product

The first generation Samsung watch was introduced for $500. The following year the price was reduced to $450. Samsung uses a ________ strategy to price its tech products. a) market-skimming b) target costing c) deceptive d) market-penetration e) predatory

market-skimming

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 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) optional-product b) product-bundle c) captive-product d) by-product e) product line

optional-product

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) by-product b) two-part pricing c) product line d) product-bundle e) captive-product

product-bundle

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) geographical c) optional product d) psychological e) promotional

promotional

There are more than 15 wheat farmers in Bowling Green, Ohio, that grow, package, and distribute the same quality wheat. An individual farmer cannot charge more than the going market price per unit without the risk of losing business to the other farmers. This is an example of ________. a) pure competition b) monopolistic competition c) oligopolistic competition d) a pure monopoly e) a black market

pure competition

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​ company's overall marketing​ strategy, the nature of the​ market, and demand. e) The nature of the​ market, demand, and the economy.

The company's overall marketing strategy, objectives and marketing mix

How do firms that use captive-product pricing make up for the low prices of their main products? a) They reduce the cost of the captive products. b) They provide the captive products as freebies. c) They set high markups on the captive products. d) They increase the price of the main products. e) They offer the captive products and main products together at a reasonable price.

They set high markups on the captive products

Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing. a) high-low b) value-added c) target return d) everyday low e) cost-plus

Value-added

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) Breakeven pricing b) Cost-plus pricing c) Value-added pricing d) High-low pricing e) EDLP pricing

Value-added pricing

A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth. a) cost-based b) target costing c) value-based d) value-added e) competition-based

Value-based

Costs that change directly with the level of production are referred to as ________ costs a) fixed b) variable c) target d) capital e) payroll

Variable

Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called ________ costs because the total changes based on the number of units produced. a) fixed b) variable c) target d) capital e) payroll

Variable

One major objective associated with a​ market-penetration pricing strategy is to​ ________. a) attract buyers willing to pay a higher price b) win a large market share c) skim off small but profitable market segments d) avoid everyday low pricing e) prevent customer dissatisfaction

Win a large market share

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 the cost of production b) an indicator of quality c) a type of segmented pricing d) an indicator of geographic pricing e) a limited time offer

an indicator of quality

Which of the following sets the upper limit for a product's pricing? a) profits b) product costs c) consumer perceptions of value d) elements of the product mix e) competition

consumer perceptions of value

The local movie theater has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing. a) time-based b) location-based c) customer-segment d) by-product e) product form

customer-segment

Companies that use​ ________ continually adjust prices to meet the characteristics and needs of individual customers and situations. a) segmented pricing b) psychological pricing c) cash rebates d) dynamic pricing e) promotional pricing

dynamic pricing

Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called? a) location-based pricing b) market-skimming pricing c) product-form pricing d) time-based pricing e) market-penetration pricing

location-based 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) time-based pricing b) customer-segment pricing c) location-based pricing d) promotional pricing e) product form pricing

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) captive-product pricing b) ​market-penetration pricing c) psychological pricing d) product bundle pricing e) market-skimming pricing

market-penetration pricing

Circuit City Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing. a) a. product line b) b. optional-product c) c. by-product d) d. product bundle e) e. captive-product

product line