Exam 11: Pricing Products: Pricing Strategies

Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share.As a consultant,you should recommend a ________ pricing strategy.

What is a major advantage of product bundle pricing?

When an arts theatre charges different prices for seats in different areas,even though the costs are the same.This form of pricing is called ________.

For low-price strategy to work,low price must help keep out the competition,and the penetration pricer must maintain its low-price position-otherwise,the price advantage may be only temporary.

Under product-form pricing,different versions of a product are priced differently,but not according to differences in its ________.

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 at risk of being accused of ________.

The basic difference between customer-segment pricing and product-form pricing is that the latter offers alternative versions of the product that are priced differently but not according to differences in their costs.

Explain two different ways a consumer might view a price cut.

Laws exist to prevent unfair ________ by ensuring that sellers offer the same price terms to customers at a given price level.

When a firm improves the quality and increases the price of a product in reaction to a competitor making a price reduction,the firm is ________.

Which of the following conditions would NOT support the use of a market-penetration pricing strategy?

When using product bundle pricing,sellers combine several of their products and offer the bundle at an increased price for increased profit.

Price escalation in international markets may result from differences in market conditions or ________.

Trade or functional discounts are offered by manufacturers to ________.

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

Explain the factors involved in setting international pricing.

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products,the manufacturer is able to reduce the main product's price to make it more competitive.

A number of top fashion-modeling agencies would most likely be charged with ________ for jointly determining what commissions they would charge for models.

Give an example of a cash discount.

When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs,it is granting a ________.