Exam 11: Pricing Strategies: Additional Considerations

For market skimming to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.

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.

________ 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.

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

List four types of discounts.

Explain the factors involved in setting international pricing.

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

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?

Which form of geographic pricing is a company using when it charges the same rate to ship a product anywhere in the United States?

Price discrimination is legal when a ________.

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

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 ________.

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

Shoe Trends, a company that manufactures formal shoes for men and women, offers to give its customers $10 for an old pair of shoes when they buy a new pair. In essence, they're reducing the price of the new shoes by $10. What is this type of price adjustment called?

In what way does the government regulate pricing?

Which of the following is true of price skimming?

Which of the following is true of promotional pricing?

Pricing strategies tend to change and evolve as the average product passes through its life cycle.

Which of the following product mix pricing strategies involves pricing additional or accessory products sold along with the main product?