Exam 11: Pricing Strategies: Additional Considerations

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?

Which of the following is true of FOB-origin pricing?

When a competitor cuts its price, a company should ________ if it believes it will not lose much market share or would lose too much profit by cutting its own prices.

The uniform-delivered pricing strategy means that goods sold are placed free on board a carrier with the customer paying the freight from the factory to the destination.

Which of the following is a geographical pricing strategy?

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

Explain product line pricing.

Give two examples of products for which marketers might use optional-product pricing.

Dynamic pricing is least prevalent online.

List four types of segmented pricing.

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

The Internet offers ________, where the price can easily be adjusted to meet changes in demand.

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

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 likely guilty of ________.

List four types of discounts.

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

Questions a company should consider if a competitor initiates a price change include all of the following EXCEPT ________.

Differentiate between market-skimming and market-penetration pricing strategies. Explain the conditions within which they are effective.

In return for participating in Honda advertising and sales support programs, Honda dealerships are rewarded with payments or price reductions, which are known as ________.

________ is a pricing strategy in which the company sets up two or more clearly identified geographic regions within which all customers pay the same total price.