Exam 11: Pricing Strategies: Additional Considerations

Compare the practices of price fixing and predatory pricing. Explain why each is prohibited by law.

List four types of segmented pricing.

While regulations exist to prohibit deceptive pricing practices, in reality, most reputable sellers do the minimum required to meet the regulations.

Leicestershire Renovations has a history of problems with customers who do not pay their bills on time. Leicestershire Renovations wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. Which of the following forms of pricing would most likely help the firm achieve its goal?

Which of the following is a geographical pricing strategy?

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

Which of the following product mix pricing strategies did Polaroid use when it set the general price range of its cameras low and the markup on its film high?

A supermarket places its store brand of blackberry jam priced at $5 per jar in the fruit preserves aisle, alongside the jam jars of a better known brand-whose products are priced at $8 apiece. Store managers reason that customers are more likely to choose the store brand instead of the better-known brand when they realize the price difference. What price adjustment strategy is evident in the supermarket's reasoning?

Consumers are less likely to use price to judge the quality of a product when they ________.

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

Explain product line pricing.

With which pricing strategy does the seller take responsibility for part or all of the actual freight charges in order to acquire the desired business?

________ allowances are price reductions given for turning in an old item when buying a new one.

Dynamic pricing is least prevalent online.

Which of the following is true of market-penetration pricing?

What is deceptive pricing?

Price discrimination is legal when a ________.

The widespread use of scanner-based computer checkouts has eradicated complaints of retailers overcharging their customers.

Price discrimination is permissible if the seller manufactures different qualities of the same product for different retailers and can prove that the price difference is proportional.

Customers located close to a firm are less likely to benefit from FOB-origin pricing than customers located farther away.