Marketing Ch 9 Quiz (Exam 2)

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

A. dynamic pricing

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

A. ​product-bundle

​________ refers to setting price based on​ buyers' perception of value rather than on the​ seller's cost. A. ​Cost-based pricing B. Customer​ value-based pricing C. Cost D. ​Value-added pricing E. Good-value pricing

B. Customer​ value-based pricing

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

B. Wherever​ possible, the company should consider ways to meet higher costs or demand without raising prices.

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

C. ​captive-product

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

C. ​market-skimming

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

D. Cutting prices in an industry loaded with excess capacity may lead to price wars.

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. ​Cost-plus pricing C. EDLP pricing D. Value-added pricing E. ​High-low pricing

D. Value-added pricing

​Geared2Beer, a craft beer​ brand, identifies a market segment that is willing to pay premium prices for its craft​ beer, and Geared2Beer managers select an ideal selling price. Managers then determine the costs to create craft beer that meets the ideal selling price. The​ company's pricing approach is referred to as​ ________. A. target return pricing B. EDLP C. ​value-added pricing D. target costing E. cost-plus pricing

D. target costing

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

D. win a large market share

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-skimming pricing B. psychological pricing C. product bundle pricing D. ​market-penetration pricing E. captive-product pricing

D. ​market-penetration pricing

Which of the following is a​ cost-oriented pricing​ approach? A. ​High-low pricing B. EDLP pricing C. ​Competition-based pricing D. Value added pricing E. Breakeven pricing

E. Breakeven 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. product form pricing B. ​customer-segment pricing C. ​time-based pricing D. promotional pricing E. location-based pricing

E. location-based pricing

Internal factors that affect pricing include​ ________. A. The​ company's overall marketing​ strategy, the nature of the​ market, and demand. B. The​ company's overall marketing​ strategy, objectives and the nature of the market C. The nature of the​ market, demand, and the economy. D. the​ company's overall marketing​ strategy, objectives and demand E. the​ company's overall marketing​ strategy, objectives, and marketing mix

E. the​ company's overall marketing​ strategy, objectives, and marketing mix

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

E. ​optional-product