Exam 11: Pricing Strategies: Additional Considerations

The Sherman, Clayton, and Robinson-Patman Acts are all federal laws that were enacted to curb the formation of ________.

Casual Comfort sells its catalog items using FOB-origin pricing. Who pays the freight charges?

Consumers who have no past experience with a product are more likely to judge it by its price.

If used infrequently, price promotions create "deal-prone" customers who wait until brands go on sale before buying them.

Which of the following is true of market-penetration pricing?

In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut?

A market-penetration pricing policy should LEAST likely be used for a new product when ________.

Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and competitors' prices?

Electrowhip, a company that manufacturers blenders and electric whisks, has decided to use a market penetration pricing strategy. Which of the following, if true, proves their decision to be a wise one?

When theaters vary seat prices due to audience preferences for seats in coveted rows, they use ________ pricing.

Marketing a product internationally rarely requires a product to be priced differently depending on the country.

With which pricing strategy does the seller take responsibility for part or all of the actual freight charges in order to acquire the desired business?

While comparison pricing claims are legal if they are truthful, the FTC warns sellers not to advertise a) factory or wholesale prices unless such prices are what they claim to be, b) comparable value prices on imperfect goods, or c) ________.

Federal legislation on price fixing requires that sellers set their prices ________.

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

Price discrimination is permissible if the seller manufactures different qualities of the same product for different retailers and can prove that the price difference is proportional.

Which of the following would be considered predatory pricing?

In segmented pricing, the difference in prices is based on differences in costs.

The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called ________ pricing.

A seller offers a ________ to trade-channel members who perform certain functions, such as selling, storing, and record keeping.