Chapter 9 Quiz

​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.

​location-based pricing

When a college or university charges more for​ out-of-state students than​ in-state students, it is practicing​ ____________

target costing

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?"

Good-value pricing

​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?

​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.

product bundle

Bath​ & Body Works uses​ _____________ pricing when the company offers​ "three-fer" deals on its products​ (such as​ soaps, lotions, and​ moisturizers).

Grabbing international market share

If the company has selected its target market and positioning​ carefully, then its marketing mix​ strategy, including​ price, will be fairly straightforward. Of the​ following, which is NOT one of the common pricing​ objectives?

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

Internal factors that affect pricing include​ ______

​Value-added pricing

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?

Price competition is a core element of our​ free-market economy.

Of the​ following, which is true about​ pricing?

an indicator of quality

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​ _______

product line

The Ford Mustang is offered in several different models. Ford uses​ __________ pricing to determine the price steps between the different models.

predatory pricing

The illegal practice of​ ______________________ is selling below cost with the intention of punishing a competitor or gaining higher​ long-run profits by putting competitors out of business.

price discrimination

The​ Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent​ _______________

zone pricing

UPS uses​ _________________, which charges different prices for shipping depending on an​ item's destination. The more distant the city where the package is being​ shipped, the higher the price UPS charges.

premium pricing

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.

If the seller can prove that its costs are different when selling to different​ retailers, then it is legal.

When, if​ ever, is price discrimination​ allowed?

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

Which of the following is true regarding the​ price-demand relationship?

Customer​ value-based pricing

Which of the following refers to setting prices based on​ buyers' perception of value rather than on the​ seller's cost?

​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?

Target return pricing

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.

dynamic pricing

Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as​ ___________

promotional

When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the​ store, it is practicing​ ___________________ pricing.

​price-fixing

When sellers set prices in conjunction or collaboration with one​ another, this illegal practice is known as​ ________

Winning large market share

___________________ is one major objective associated with a​ market-penetration pricing strategy.