Marketing Pearson Q ch 11

(C) product bundle

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

(A) price-fixing

Federal legislation on​ __________ states that sellers must set prices without talking to competitors. A. ​price-fixing B. interstate commerce C. ​trade-restrain D. deceptive pricing E. discriminatory pricing

(A) psychological pricing

Some sellers use​ 00-cent endings on regularly priced items and​ 99-cent endings on discount merchandise. This is an example of pricing referred to as​ __________. A. psychological pricing B. segmented pricing C. promotional pricing D. dynamic pricing E. geographical pricing

(C) Selling below cost with the intention of punishing a competitor

What is predatory​ pricing? A. Sellers offering the same price terms to customers at a given level of trade B. Selling below cost to unload excess inventory C. Selling below cost with the intention of punishing a competitor D. Setting prices without talking to competitors E. A manufacturer requiring dealers to charge a specified retail price for its product

(D) To prevent unfair price discrimination

What is the purpose of the​ Robinson-Putnam Act? A. To prevent predatory pricing B. To prevent scanner fraud C. To prevent deceptive pricing D. To prevent unfair price discrimination E. To prevent​ price-fixing

(E) ​market-skimming

When Apple introduced its​ iPhone, it priced the new product at​ $599, considerably higher than either its iPod or competing cellular phones. Apple Computer was pursuing​ a(n) ________ new product pricing strategy. A. ​optional-product B. ​by-product C. ​market-penetration D. ​captive-product E. ​market-skimming

(C) Predatory pricing

______ is the practice of pricing products below cost to harm competitors. A. ​Price-fixing B. Price discrimination C. Predatory pricing D. Deceptive pricing E. Retail price maintenance

(A) deceptive pricing

______ occurs when retailers set an artificially high​ "regular price" and then advertise a​ "sale price," which is actually close to their everyday price. A. Deceptive pricing B. ​Price-fixing C. Retail price maintenance D. Price discrimination E. Predatory pricing

(A) price-fixing

Archer Daniels Midland Co is the​ world's largest processor of​ soybeans, corn, and wheat. In the​ 1990s, the Justice Department found it guilty of regularly meeting with competitors when setting prices. ADM was guilty of​ ________. A. ​price-fixing B. price discrimination C. deceptive pricing D. predatory pricing E. retail price maintenance

(D) reducing​ price, raising perceived​ value, improving quality and increasing​ price, and launching a​ low-price "fighter​ brand"

Assume a competitor has cut prices and a company determines it should respond. Potential actions that the company could initiate include​ ________. A. reducing​ price, raising perceived​ value, improving quality and decreasing​ price, and launching a​ low-price "fighter​ brand" B. reducing​ price, raising perceived​ value, decreasing quality and increasing​ price, and launching a​ low-price "fighter​ brand" C. raising​ price, raising perceived​ value, improving quality and increasing​ price, and launching a​ low-price "fighter​ brand" D. reducing​ price, raising perceived​ value, improving quality and increasing​ price, and launching a​ low-price "fighter​ brand" E. reducing​ price, reducing perceived​ value, improving quality and increasing​ price, and launching a​ low-price "fighter​ brand"

(D) ​captive-product pricing

Companies that make products that must be used along with a main product are using​ __________. A. product line pricing B. ​optional-product pricing C. ​by-product pricing D. ​captive-product pricing E. product bundle pricing

(C) dynamic pricing

Companies that use​ ________ continually adjust prices to meet the characteristics and needs of individual customers and situations. A. promotional pricing B. cash rebates C. dynamic pricing D. segmented pricing E. psychological pricing

(A) segmented

In​ __________pricing, the company sells a product or service at two or more​ prices, even though the difference in prices is not based on differences in costs. A. segmented B. dynamic C. discount and allowance D. promotional E. psychological

(D) ​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. Promotional pricing B. ​Customer-segment pricing C. ​Time-based pricing D. ​Location-based pricing E. ​Product-form pricing

(A) an indicator of quality

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Because she does not know much about​ wine, she will likely use the price of the wines as​ ________. A. an indicator of quality B. an indicator of geographic pricing C. a type of segmented pricing D. an indicator of the cost of production E. a limited time offer

(A) enough buyers must want the product at a higher price

Market penetration prices are preferred in all of the following conditions except​ __________. A. enough buyers must want the product at a higher price B. the production and distribution costs must decrease as sales volume increases C. the market must be highly price sensitive so that a low price produces more market growth D. the low price must help keep out the competition E. the penetration price must maintain its​ low-price position

(A) an initial low price is set by the companies

Market skimming prices are preferred in all of the following conditions except​ __________. A. an initial low price is set by the companies B. competitors should not be able to enter the market easily and undercut the high price C. the​ product's quality and image must support its higher price D. enough buyers must want the product at that price E. the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more

(D) win a large market share

One major objective associated with a​ market-penetration pricing strategy is to​ ________. A. skim off​ small, but​ profitable, market segments B. avoid everyday low pricing C. attract buyers willing to pay a higher price D. win a large market share E. prevent customer dissatisfaction

(D) ​low-price fighter items

Techniques that can be used by sellers for avoiding​ customers' perception of price gouging includes all of the following except​ __________. A. increase prices B. improve perceived value C. adjust quality D. ​low-price fighter items E. reduce prices

(C) rationing products to customers

Techniques that can be used by sellers for avoiding​ customers' perception of price gouging includes all of the following except​ __________. A. price increases should be supported by company communications telling customers why prices B. the company should consider ways to meet higher costs or demand without raising prices C. rationing products to customers D. maintaining a sense of fairness surrounding any price increase E. the company can shrink the product or substitute​ less-expensive ingredients instead of raising the price

(B) product line

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

(A) product bundle pricing

The pricing method in which sellers combine several products and offer a reduced price is known as​ __________. A. product bundle pricing B. ​captive-product pricing C. ​optional-product pricing D. ​by-product pricing E. product line pricing

(B) Reduce the price

Which of the following is a potentially effective action a company could take in response to a​ competitor's price​ cut? A. Reduce both the price and quality. B. Reduce the price. C. Launch a​ high-price "fighter​ brand." D. Raise the price. E. Decrease the perceived value.

(A) For a​ market-skimming strategy to be​ successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more

Which of the following statements is true concerning new product pricing​ strategies? A. For a​ market-skimming strategy to be​ successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more. B. A​ market-penetration strategy should be used if the market is not highly price sensitive. C. If competitors can easily enter the​ market, a​ market-skimming strategy should be used. D. When using a​ market-skimming strategy, marketers do not need to focus on the​ product's quality and image. E. For a market penetration strategy to​ work, production and distribution costs must increase as sales volume increases.

(D) Cutting prices in an industry loaded with excess capacity might lead to price wars

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

(A) Wherever​ possible, the company should consider ways to meet higher costs or demand without raising prices

Which of the following statements is true regarding initiating price​ increases? A. Wherever​ possible, the company should consider ways to meet higher costs or demand without raising prices. B. Companies do not need to communicate to customers reasons for price increases. C. Price increases do not impact profits. D. Prices should be increased when there is a lack of demand. E. Cost inflation is not a factor in price increases.

(D) ​optional-product

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. ​by-product D. ​optional-product E. product bundle

(A) ​Market-penetration 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. ​Market-penetration pricing B. ​Captive-product pricing C. Psychological pricing D. Product bundle pricing E. ​Market-skimming pricing

(D) captive-product

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

(C) zone pricing

UPS charges different prices for shipping depending on which region of the United States the item is being shipped to. The more distant the city the package is being shipped​ to, the higher the price UPS charges. Which geographic pricing method is UPS​ using? A. ​Base-point pricing B. ​Uniform-delivered pricing C. Zone pricing D. FOB origin E. ​Freight-absorption pricing