marketing ch 10 quiz

price lining

Marketers often apply their understanding of the psychological aspects of pricing in a practice they call​ ________, whereby items in a product line sell at different​ prices, or price points.

a sharing economy

One current consumer trend is consumers who allow others to borrow a good or service for a small​ fee, usually done on an​ on-line platform. This is referred to as​ _____.

​loss-leader pricing

When retailers advertise products at very low prices or even below cost in the hopes that customers will purchase other items at regular​ prices, they are engaging in​ _____.

They are organic

Which feature of cryptocurrencies is attractive to many around the​ globe?

Price leadership

Which of the following pricing strategies is usually the rule in an oligopolistic industry that a few firms​ dominate, which might be in the best interest of all players because it minimizes price​ competition?

Seasonal discounts

Which of the following pricing tactics is used when price reductions are offered only during a certain time of the​ year?

Freemium pricing

a business strategy in which a product in its most basic version is provided free of charge but the company charges money for upgraded versions of the product with more​ features, greater​ functionality, or greater​ capacity

Internet price discrimination strategy

a pricing strategy in which the price changes for different buyers based on order size or geographic​ location

Fixed cost

costs of production that do not change with the number of units​ produced

​Demand-based pricing

firm bases the selling price on an estimate of volume or quantity that it can sell in different markets at different​ prices

Yield management pricing

heavily used by hospitality companies like​ airlines, hotels, and cruise lines because these businesses charge different prices to different customers in order to manage capacity while they maximize​ revenues

Dynamic pricing

online strategy in which the price can easily be adjusted to meet changes in the​ marketplace

​Bait-and-switch

refers to a deceptive pricing tactic in which an advertised price special is used as bait to get customers into the store with the intention of selling them a​ higher-priced item

Variable cost

refers to the costs of production that fluctuate depending on the number of units​ produced

Market share

refers to the percentage of a​ market, defined in terms of either sales units or​ revenue, accounted for by a specific​ firm, product​ lines, or​ brands

Opportunity cost

refers to the value of something we give up to obtain something​ else

Price fixing

two or more companies conspire to keep prices at a certain​ level

Price bundling

​_____ means selling two or more goods or services as a single package for one pricelong dasha price that is often less than the total price of the items if bought individually.

Skimming

​_____ pricing means that the firm charges a​ high, premium price for its new product with the intention of reducing it in the future in response to market pressures.

prestige

A Rolex​ watch, a Louis Vuitton​ handbag, and a Rolls Royce automobile are all examples of​ _____ products.

Markup

an amount added to the cost of a product to create the price at which a channel member will sell the​ product

Elastic demand

demand in which changes in price have large effects on the amount​ demanded