Exam 11: Pricing Strategies: Additional Considerations

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?

In a bid to attract more customers in a market that has several competitors, Barrymore's Bakery slashed the prices of all its products by 50 percent. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using?

Solar Tanning Salon prices tanning sessions at $25 per visit. It also offers seasonal passes for $175 that allow the customer to visit the salon multiple times in a year. This is an example of a ________.

Consumers are less likely to use price to judge the quality of a product when they ________.

A quantity discount is a price reduction for buyers who ________.

Which of the following is true of the bottom of the pyramid?

Why is identifying predatory pricing difficult?

Which of the following is used in an attempt to dominate the market through a pricing strategy?

Why is predatory pricing considered illegal?

When a firm varies its price by the season, it is using ________ pricing.

Trade-in allowances are most commonly used in the ________ industry.

Price discrimination is legal when a ________.

When faced with a competitor who has cut its product's price, which of the following is the most cost-effective way for a company to maintain its own price but raise the perceived value of its offer?

Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?

The ________ seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given price level.

Which of the following price adjustment strategies offers a price reduction to buyers who pay their bills promptly?

Online flash sales are used to create buying urgency and make buyers feel lucky to have gotten in on the deal.

Which of the following product mix pricing strategies involves pricing multiple products to be sold together?

Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two models share the same specifications. What type of pricing does Multiprint use?

When using product bundle pricing, sellers combine several of their products and offer the bundle at an increased price for increased profit.