Exam 11: Pricing Strategies: Additional Considerations

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

Launching a fighter brand is an effective way to deal with a situation in which the market segment being lost is price sensitive and will not respond to arguments of higher quality.

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

When a competitor cuts its price, a company should ________ if it believes it will not lose much market share or would lose too much profit by cutting its own prices.

Which of the following is true of product line pricing?

Pricing strategies tend to change and evolve as the average product passes through its life cycle.

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

Marketing a product internationally rarely requires a product to be priced differently depending on the country.

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.

A quantity discount is a price reduction for buyers who ________.

Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most likely guilty of ________.

Under which type of geographic pricing strategy does each customer take responsibility for the freight charges for the product from the factory to its destination?

Which of the following would most likely lead to a company initiating a price increase?

For segmented pricing to be an effective strategy, prices should reflect real differences in customers' perceived value.

La Belle released a cut glass bottle of perfume at $299 per item, even though its major competitor prices its signature scent at $99 per item. La Belle reasons that customers in search of luxury goods will prefer its product because they are likelier to believe that high price indicates superior quality. What price adjustment strategy is evident in its reasoning?

The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called ________ pricing.

If a large retailer sold numerous items below cost with the intention of punishing small competitors and gaining higher long-run profits by putting those competitors out of business, the retailer would be guilty of ________.

Pricing across a product mix is difficult because various products have related demand and costs, and products face different degrees of competition.

The uniform-delivered pricing strategy means that goods sold are placed free on board a carrier with the customer paying the freight from the factory to the destination.

Motorzone offers replacement parts for old Volkswagen Beetles. The company calculates shipping charges based on shipping parts from Boston, even though some parts actually ship from St. Louis. Motorzone most likely practices ________ pricing.