Chapter 9 quiz
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. A. zone pricing B. freight-absorption pricing C. free on board (FOB) origin D. base-point pricing E. uniform-delivered pricing
A. zone 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? A. Good-value pricing B. Cost-based pricing C. Value-added pricing D. High-low pricing E. Break-even pricing
A. Good-value 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. A. premium pricing B. captive-product C. by-product D. market-penetration E. optional-product
A. premium pricing
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. price discrimination B. retail price maintenance C. deceptive pricing D. price-fixing E. predatory pricing
A. price discrimination
Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as _______________________. A. psychological pricing B. cash rebates C. dynamic pricing D. segmented pricing E. promotional pricing
C. dynamic pricing
When a college or university charges more for out-of-state students than in-state students, it is practicing ______________________. A. product form pricing B. promotional pricing C. time-based pricing D. location-based pricing E. customer-segment pricing
D. location-based 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? A. Breakeven pricing B. EDLP C. High-low pricing D. Cost-plus pricing E. Value-added pricing
E. Value-added pricing
Which of the following is true regarding the price-demand relationship? A. If demand is inelastic, a small change in price will result in a large change in demand. B. Demand and price are directly related—the higher the price, the greater the demand. C. If demand is elastic, sellers will consider lowering their prices. D. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. E. Price elasticity measures how responsive price will be to a change in demand.
C. If demand is elastic, sellers will consider lowering their prices.
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. optional-product B. segmented C. promotional D. psychological E. geographical
C. promotional
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. product bundle pricing B. captive-product pricing C. psychological pricing D. market-penetration pricing E. market-skimming pricing
D. market-penetration pricing