marketing quiz 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

Comparison discounting

Under Armour is establishing a ___________ pricing objective to maintain or increase its product's sales in relation to total industry sales

Market share

What type of pricing objective would an organization use if it were in a favorable position and desired nothing more

Status quo

Odd-even pricing is

a psychological pricing strategy

Some grocery stores collect data on competitive prices

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

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

For custom-made equipment or commercial construction projects, which pricing method is most likely used

cost-plus

The three primary bases for developing prices are

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

When establishing prices, a marketer's first step is to

develop pricing objectives

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ___________ pricing

differential

A product is a price leader when

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

Wet Seal, a retailer of swimwear, employs a commonly used cost-based pricing method called

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

The newest version of a product like Bose headphones is likely to use __________ , while the new version of Red Bull is likely to use ___________

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

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.

professional pricing

If a business decides to reduce its prices once in a while on an unsystematic basis, it is using

random discounting

Markup is measured either as a percentage of _________ or a percentage of ________

selling price; costs