Exam 11: Pricing Products: Pricing Strategies

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

When Polaroid set the general price range of its cameras low and the markup on its film high,it was practicing ________.

When a company charges shipping as if every part was shipped from its headquarters.The company practices ________.

Using ________,companies are able to turn their by-products into cash,allowing them to make the price of their main product more competitive.

How do consumers benefit from product bundle pricing?

A seasonal discount is a price reduction to buyers who buy merchandise or services while they are in season.

For what types of products might marketers use market-skimming pricing?

Explain the psychology behind a price of $9.99 instead of $10.00.

Low-interest financing and longer warranties are both examples of ________.

Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing.

When consumers cannot judge the quality of a product because they lack information or skill,they are likely to perceive a higher-priced product as having higher quality.

Which of the following is a reason for a company to raise its prices?

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

Price escalation in international markets may result from four of these five marketing conditions.Which one will have the LEAST effect?

Secret Sneaker will give anyone $10 for an old pair of sneakers,regardless of condition,when that person purchases a new pair of sneakers.The end result is essentially reducing the price of the new sneakers by $10.What is this type of price adjustment called?

Which of the following is NOT a price adjustment strategy?

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

Governments accept some reasons for price fixing when it does not limit competition.

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

Which of the following is a reason that a marketer would choose a penetration pricing strategy?