Exam 10: Price: What Is the Value Proposition Worth

Market-skimming is a more popular strategy for pricing new products,while market-penetration is a more popular strategy for pricing products that are more advanced in the product life cycle.

Each member of a channel of distribution adds a ________ to create the price at which they will sell the product.

________ is the assignment of value,or the amount a consumer must give to receive a product.

After looking at the ads in her Sunday paper,Ruby decided to visit a local nursery and buy potting soil at $1.99 a bag.The regular price is $4.99 a bag.While Ruby was there she also purchased three bushes,six flowering plants,and a bird bath.You can infer from this information that the nursery used the bags of potting soil as a ________.

A firm is using a(n)________ strategy when it introduces a product at a very low price to gain market share early on.

Explain the difference between elastic demand and inelastic demand.

Which of the following is true about noncumulative quantity discounts?

Two forms of demand-based pricing are ________.

In a market with ________,there are many sellers,each offering a slightly different product.Firms can differentiate products and focus on nonprice competition.

A break-even analysis helps marketers understand the relationship between price and demand.

A(n)________ strategy is implemented when a store places two similar items next to each other,highlighting the fact that the price of one item is slightly lower than that of the other item.

Manufacturers of which of the following would be most likely to use freight absorption pricing?

From a marketer's point of view,price lining is a way to do which of the following?

By using ________,a company deliberately sets a low price with the intention of driving its competition out of business.

On the Internet,price can easily be adjusted to meet changes in the marketplace.This is called ________.

The changes in prices of other products affect the demand for an item.This is a phenomenon called ________.

How has the Internet made it easier for companies to use dynamic pricing strategies? Use an example in your explanation.

According to the law of demand,which of the following is true?

A business using price lining is doing which of the following?

A local restaurant sells lunch entrees for $7.95,$9.95,and $11.95.From this information,you can infer the restaurant uses which of the following?