Exam 11: Pricing Products: Pricing Strategies

Southeast Telephone Company 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)________.

When consumers cannot judge quality because they lack the information or skill,price becomes ________.

A car maker's strategy of advertising a basic vehicle model with few conveniences and comforts at a low price to entice buyers and then convincing customers to buy higher-priced models with more amenities is an example of which of the following?

Mark's Markers,a manufacturer of color markers,has required its dealers to charge a specified retail price for its markers.Mark's is most likely guilty of ________.

Discuss under what conditions a company might consider using price cuts or price increases.

Price discrimination may be used to match competition as long as the strategy is temporary,localized,and ________.

A company sets not a single price,but rather a ________ that covers different items in its line that change over time as products move through their life cycles.

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

Freight-absorption pricing is used for ________ and ________.

All of the following are typical ways a buyer might form a reference price EXCEPT ________.

Companies usually develop ________ rather than ________.

Using this pricing strategy,the seller takes responsibility for part or all of the actual freight charges in order to get the desired business.

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

In many industries,sellers use well-established price points for the products in their line.

Sawasdee Paper Company charges all customers within different identified geographical areas a single total price.The more distant the area,the higher the price.This is ________.

By definition,________ is used when a firm sells a product or service at two or more prices,even though the difference in price is not based on differences in cost.

There are many reasons why a firm might consider cutting its price.All of the following are among them EXCEPT ________.

Some industries commonly use two-part pricing,breaking the price down into a fixed fee and a fixed usage rate.

Give two examples of products for which captive product pricing may be used.

The FOB-origin pricing strategy means that the goods sold are placed free on board a carrier.At that point,the title and responsibility pass to the customer,who pays the freight from the factory to the destination.