Exam 11: Pricing Strategies: Additional Considerations

Refer to the scenario below to answer the following question(s). Champion, Inc. is a manufacturer of lunch boxes, school bags, and school stationery. Charles Payton, the CEO of Champion, hopes to sell the products at a low price to penetrate the market quickly. -Which of the following best supports a market-penetration strategy for Champion?

If a large retailer sold numerous items below cost with the intention of punishing small competitors and gaining higher long-run profits by putting those competitors out of business, the retailer would be guilty of ________.

Motorzone offers replacement parts for old Volkswagen Beetles. The company calculates shipping charges based on shipping parts from Boston, even though some parts actually ship from St. Louis. Motorzone most likely practices ________ pricing.

Why do businesses use cash discounts when they are in essence losing some money on the sale?

The "bottom of the pyramid" refers to ________.

A(n) ________ is a straight reduction in price on purchases during a stated period of time or of larger quantities.

A(n) ________ refers to promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.

Which of the following likely does NOT play into products being offered for different prices in different countries?

Ways to avoid accusations of price gouging include ________.

Which of the following is true of product line pricing?

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

When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the ________ pricing strategy.

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

When sellers set prices after talking to competitors and engaging in collusion, they are involved in ________.

Thinking Cap Corp. prices its various cap designs at different price levels, ranging from $2.05 to $5.95. This is an example of optional product pricing.

Companies set not a single price, but a pricing ________ that covers different items in its line and changes over time as products move through their life cycles.

How might a consumer view a price cut?

Reasons for a price increase include all of the following EXCEPT ________.

Which of the following product mix pricing strategies involves pricing products that can only be used with the main product?

Which of the following companies uses captive product pricing?