Marketing (HW 5)

In pricing innovative new​ products, a company can use​ ________ by initially setting high prices to maximize the amount of revenue from a sufficient number of buyers willing to pay the higher price. A. ​market-penetration pricing B. ​market-skimming pricing C. discount pricing D. ​cost-plus pricing E. profitability pricing

B

​_______ of the​ product's value set the ceiling on​ pricing, while​ _______ set the floor. A. Customer​ perceptions; costs B. Variable​ costs; fixed costs C. Variable​ costs; customer-value perceptions D. Fixed​ costs; customer-value perceptions E. ​Costs; customer-value perceptions

A

​___________ are payments or price reductions that reward dealers for participating in advertising and​ sales-support programs. A. volume discounts B. ​trade-in allowances C. promotional allowances D. cash discounts E. quantity discounts

C

Other internal factors that influence pricing decisions include​ ____________. A. the​ company's overall marketing​ strategy, objectives, and marketing​ mix, as well as organizational considerations B. the​ company's overall marketing​ strategy, objectives, and marketing mix C. the​ company's overall pricing​ strategy, objectives, and marketing​ mix, as well as organizational considerations D. the​ company's overall sales​ strategy, objectives, and marketing​ mix, as well as organizational considerations E. the​ company's overall sales​ strategy, revenue​ objectives, and marketing​ mix, as well as organizational considerations

A

There are several types of product mix pricing​ situations, which include​ ______________, by-product​ pricing, and product bundle pricing. A. product line​ pricing, optional-product​ pricing, captive-product pricing B. ​non-bundling product​ pricing, optional-product​ pricing, captive-product pricing C. sales line​ pricing, optional-product​ pricing, captive-product pricing D. product line​ pricing, off-product​ pricing, captive-product pricing E. product line​ pricing, mandatory product​ pricing, captive-product pricing

A

The seven price adjustment strategies are​ _____, ______,​ _____, promotional​ pricing, geographical​ pricing, dynamic​ pricing, and international pricing. A. product line​ pricing, optional-product​ pricing, captive-product pricing B. discount and allowance​ pricing, segmented​ pricing, psychological pricing C. discount and allowance​ pricing, segmented​ pricing, penetration pricing D. discount and allowance​ pricing, segmented​ pricing, market-skimming pricing E. discount and allowance​ pricing, segmented​ pricing, product bundle pricing

B

When Apple introduced its iPhone​ X, it priced the new product at nearly​ $1,000, considerably higher than competing smart phones. Apple was pursuing a​ ___________________ new product pricing​ strategy. A. ​market-penetration B. premium pricing C. ​captive-product D. ​optional-product E. ​by-product

B

Which of the following pricing strategies would a company use to attract a large number of buyers quickly and win a large market​ share? A. ​By-product pricing B. ​Market-penetration pricing C. ​Market-skimming pricing D. ​Optional-product pricing E. ​Captive-product pricing

B

To successfully implement a​ market-skimming strategy for a new​ product, which of the following conditions needs to be​ present? A. The company objective is to initially gain a large market share. B. The company objective is to attract a large number of buyers quickly. C. The quality level of the product does not match the higher price. D. Buyers are not willing to pay the higher price. E. Competitors are not able to enter the market quickly and undercut the high price.

C

Which of the following reverses the usual process of first designing a new​ product, determining its​ cost, and then​ asking, "Can we sell it for​ that?" A. target return pricing B. ​cost-plus pricing C. target costing D. ​value-added pricing E. EDLP

C

A company can use​ _________ by setting a low initial price to penetrate the market deeply and win a large market share. A. ​market-penetrating pricing B. discount pricing C. ​market-skimming pricing D. ​cost-plus pricing E. profitability pricing

A

When Microsoft or Apple sells software as a​ package, it is engaging in what type of​ pricing? A. Product bundle pricing B. ​Two-part product pricing C. ​Captive-product pricing D. ​By-product pricing E. Product line pricing

A

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

B

A company sets a high price on a new product it introduces to maximize revenue from various market segments. Which new product pricing strategy is the company​ using? A. Product bundle pricing B. ​Market-skimming pricing C. Product line pricing D. ​Captive-product pricing E. ​Market-penetration pricing

B

For​ services, there is a form of​ captive-product pricing known as​ _____ pricing. A. ​by-product B. ​two-part C. product bundle D. ​optional-product E. product line

B

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

C

Companies have to think carefully when considering price changes. They must consider which of the​ following? A. Sales and marketing reactions B. Investor reactions C. Buyer and competitor reactions D. Research and development reactions E. Management reactions

C

In setting its overall pricing​ strategy, companies need to consider three​ factors: ______,​ ______, and​ ______. A. Domestic customer purchasing​ habits, costs, and the​ company's pricing strategies B. Customer purchasing​ habits, costs, and​ competitors' pricing strategies C. Customer perceived​ value, costs, and​ competitors' pricing strategies D. Customer perceived​ value, costs, and the​ company's pricing strategies E. Customer perceived​ value, vendor perceived​ value, and​ competitors' pricing strategies

C

Marketers use three major pricing​ strategies: ______________________. A. customer​ value-based pricing,​ cost-based pricing, and​ government-based pricing B. ​demand-based pricing,​ revenue-based pricing, and​ government-based pricing C. customer​ value-based pricing,​ cost-based pricing, and​ competition-based pricing D. ​demand-based pricing,​ cost-based pricing, and​ competition-based pricing E. customer​ value-based pricing,​ cost-based pricing, and​ revenue-based pricing

C

Of the​ following, which is NOT one of the​ product-mix pricing​ situations? A. Product line pricing B. ​Captive-product pricing C. Penetration pricing D. Product bundle pricing E. ​Optional-product pricing

C

A​ company's pricing strategy is affected by internal factors such as​ ___________________. A. overall marketing​ strategy, objectives,​ demand, and international considerations B. overall marketing​ strategy, objectives, and market conditions C. overall marketing​ strategy, the nature of the​ market, and demand D. overall marketing​ strategy, objectives, marketing​ mix, and other organizational considerations E. the nature of the​ market, demand, and the economy

D

Laws prohibit​ ____________, which means a manufacturer cannot require dealers to charge a specified retail price for its product. A. price discrimination B. deceptive pricing C. ​price-fixing D. retail price maintenance E. predatory pricing

D

Pricing strategies usually change as a product passes through its life cycle but are especially challenging during the​ _______ stage. A. growth B. decline C. maturity D. introductory E. relaunch

D

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

D

Setting the base price for a product is only the start. The company must then adjust the price to account for​ ____________________________ differences. A. customer and vendor B. vendor and situational C. distribution and channel D. customer and situational E. customer and environmental

D

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

D

The illegal practice of selling below cost to harm competitors is known as​ ______. A. ​price-fixing B. retail price maintenance C. deceptive pricing D. predatory pricing E. price discrimination

D

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

D

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

D

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

E

Price ceilings are set by customer perception. Which of the following sets the floor for the price that a company​ charges? A. Customers B. Market conditions C. Revenue projections D. Competitors E. Costs

E

Printer companies often charge a fairly low price for their inkjet printers​ (relative to​ costs) and a high price for replacement cartridges. These companies are using a strategy of​ ___________ pricing. A. ​optional-product B. ​captive-product C. product bundle D. ​by-product E. product line

B

The​ Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent​ ______________________. A. deceptive pricing B. price discrimination C. ​price-fixing D. retail price maintenance E. predatory pricing

B

Value-based pricing begins with analyzing​ ___________. A. product attributes and product features B. internal costs and value perceptions C. consumer needs and value perceptions D. product attributes and product perceptions E. market needs and​ competitors' prices

C

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

D

Another price adjustment strategy is​ ______________ pricing, where the company sells a product at two or more prices to accommodate different​ customers, product​ forms, locations, or times. A. psychological B. geographical C. promotional D. dynamic E. segmented

E

Of the​ following, which is core element of our​ free-market economy? A. Price cuts B. Price competition C. Free trade D. Uniform pricing regulations E. Cost controls

B

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

C

A variation of​ break-even pricing is​ ____________________, which uses the concept of a​ break-even chart that shows the total cost and total revenue expected at different sales volume levels. A. Target return pricing B. ​Value-added pricing C. Everyday low pricing​ (EDLP) D. ​Competition-based pricing E. ​High-low pricing

A

Beyond the market and the​ economy, what other factors in its external environment must a company consider when setting​ prices? A. ​Resellers, the​ government, and social concerns B. The​ company's overall marketing strategy and selecting target markets C. The​ company's overall marketing strategy and marketing mix D. Setting prices to attract new customers and setting prices to prevent competitors from entering the market E. Who within the organization should set prices and whether or not to have a pricing department

A

External factors when considering pricing include​ ________________________________ such as the​ economy, reseller​ needs, and government actions. A. the nature of the market and demand and environmental factors B. demand and environmental factors C. nature of the market and environmental factors D. global​ demand, nature of the​ market, and environmental factors E. domestic​ demand, nature of the​ market, and environmental factors

A

How do companies apply pricing strategies to accommodate differences in customer segments and​ situations? A. They apply a variety of price adjustment strategies. B. They create price allowance pricing strategies. C. They use accommodations such as preferred pricing strategies. D. They use selective promotional pricing strategies. E. They focus on segmented pricing strategies.

A

Which of the following is true regarding the​ price-demand relationship? A. If demand is​ elastic, sellers will consider lowering their prices. B. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. C. Demand and price are directly related—the higher the​ price, the greater the demand. D. If demand is​ inelastic, a small change in price will result in a large change in demand. E. Price elasticity measures how responsive price will be to a change in demand.

A

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

A