Exam 11: Pricing Strategies: Additional Considerations

Solar Tanning Salon prices tanning sessions at $25 per visit. It also offers seasonal passes for $175 which permit the customer to visit the salon multiple times in a year. This is an example of a(n) ________.

A market-skimming pricing strategy should NOT be used for a new product when ________.

Which of the following best supports a market-penetration strategy for Champion?

When faced with a competitor who has cut its product's price, which of the following is the most cost-effective way for a company to maintain its own price but raise the perceived value of its offer?

Which of the following is true of product line pricing?

In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut?

Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?

The "bottom of the pyramid" refers to ________.

Which of the following is true of product bundle pricing?

A seasonal discount is a price reduction to buyers who buy merchandise while the products are in season.

Big Mike's Health Food Store sells nutritional energy foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of ________.

Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?

Which form of geographic pricing is a company using when it charges the same rate to ship a product anywhere in the United States?

Casual Comfort sells its catalog items using FOB-origin pricing. Who pays the freight charges?

Under ________, different versions of the product are priced differently but not according to differences in their costs.

Companies which set a low price for a new product in order to attract a large number of buyers and a large market share are using the ________ strategy.

When sellers set prices after talking to competitors and engaging in collusion, they are involved in ________.

Cellpoint uses two-part pricing for its long-distance call charges. Because this is a service, the price is broken into a fixed fee plus a(n) ________ rate.

Which of the following is true of price skimming?

In the case of services, captive product pricing is called ________ pricing.