Exam 11: Additional Pricing Considerations

Brown Baby Tanning Salon offers weekly tanning sessions for $15 and season passes with unlimited tanning for $150.Brown Baby Tanning Salon is offering pricing.

When Johnny On the Spot,a house mover,sells boxes and pads that must be used in moving a household's furniture,the company is practicing by- product pricing.

Big Mike's Health Food Store sells nutritional energy- producing foods.The price of the products sold varies according to individual customer accounts and situations.For example,long- time customers receive discounts.This strategy is an example of _.

Which of the following is LEAST likely to cause price escalation in foreign markets?

Water Light Fishing Boats is like most companies.The company commercializes its new- product ideas one at a time rather than developing a product line.

When product managers at Schwinn make decisions about which types of bicycle seats,handle bars,and saddlebags to offer customers on their bikes,they are engaged in _.

How can a manufacturer avoid using retail price maintenance but still exert some influence over the price retailers charge for its product?

Valeo Fashions has just introduced a new line of fashion dresses for teens.It will initially enter the market at high prices in a pricing strategy.

Price discrimination is legal under which of the following conditions?

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 _.

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

A company that raises its prices is most at risk of being accused of which of the following?

Which of the following is a major factor that influences price increases?

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 .

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

HiPoint 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).

Companies bringing out a new product can choose between two broad strategies: market- skimming pricing and market- penetration pricing.Distinguish between the two.

Competitors are most likely to react to a price change when .

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.

Most companies adjust their basic prices to account for various customer differences and changing situations.