Exam 11: Pricing Strategies: Additional Considerations

Electrowhip, a company that manufacturers blenders and electric whisks, has decided to use a market-penetration pricing strategy. Which of the following, if true, proves their decision to be a wise one?

When The Candy Store sets a low initial price in order to get its "foot in the door" and to quickly attract a large number of buyers, the company is practicing market-skimming pricing.

Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two of the firm's models share the same specifications. What type of pricing does Multiprint use?

Federal legislation on price fixing requires that sellers set their prices ________.

A market-penetration pricing policy should LEAST likely be used for a new product when ________.

Hearth & Home, a store which sells household products, has announced a one-week sale on its new carpet line. This is an example of ________.

In which of the following geographic pricing strategies would customers located close to the company pay the same amount as customers in distant locations?

Which of the following price adjustment strategies offers a price reduction to buyers who pay their bills promptly?

Which of the following product mix pricing strategies involves pricing additional/accessory products sold along with the main product?

The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentines Day is an example of a ________.

Consumers who have no past experience with a product are especially likely to judge it by its price.

The Sherman, Clayton, and Robinson-Patman Acts are all federal laws that were enacted to curb the formation of ________.

Trade-in allowances are most commonly used in the ________ industry.

A seller offers a ________ to trade-channel members who perform certain functions, such as selling, storing, and record keeping.

Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and competitors' prices?

If Detroit DLX charges the same price for the delivery of its product to customers located within the Great Lakes states, but a different price to customers elsewhere, the company is using ________.

In a bid to attract more customers in a market which has several competitors, Barrymore's Bakery slashed the prices of all its products by 50%. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using?

Failure to enter the current price into a retailer's system may result in charges of ________.

When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the ________ pricing strategy.

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________.