Exam 11: Pricing Strategies: Additional Considerations

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________ pricing.

________ allowances are payments or price reductions that reward dealers for participating in advertising and sales support programs.

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

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. -Noticing that themed envelopes aren't selling well, Charles Payton decides to offer customers a special "letter writing" kit. He prices the kit-which comprises letter paper, matching envelopes, and pens-at $5, even though the combined prices of the individual items is $8. Which of the following pricing strategies is he using?

Big Mike's Health Food Store sells nutritional energy 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 ________.

Failure to enter the current price into a retailer's system may result in charges of ________.

After entering a market by using market-penetration pricing, a company can easily raise its price and maintain its market share.

Freight-absorption pricing is used for ________.

Companies that set a low price for a new product in order to attract a large number of buyers and a large market share are using the ________ strategy.

Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more sophisticated tablets at $399 per unit. The more features a model has, the more expensive it is. What pricing strategy is Tone Zone using for its range of tablets?

If Detroit DLX charges the same price for the delivery of its product to customers located in the states near the Great Lakes, but a different price to customers elsewhere, the company is using ________.

Which of the following is true of price skimming?

Segmented pricing is only effective when ________.

Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages that do not, even though the cottages and services offered are identical in every other aspect. This form of pricing is called ________ pricing.

In which of the following geographic pricing strategies would customers located close to the company pay the same amount as customers in distant locations?

Why might marketers use market-penetration pricing?

Sellers cannot influence or use consumers' reference prices when setting their product prices.

Which of the following is NOT true of public policies and pricing?

Explain the factors involved in setting international pricing.

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