Exam 11: Pricing Strategies: Additional Considerations

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) ________.

Hearth & Home, a store which sells household products, has announced a one-week sale on its new carpet line. This is an example of ________.

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

Sensenig Propeller manufactures replica antique wooden airplane propellers. In the process of production, the company generates a great deal of scrap hardwood. How can using by-product pricing benefit the company?

Reasons sellers go beyond what is required by pricing regulations include all of the following EXCEPT that ________.

Explain product line pricing.

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

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

The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentine's Day is an example of a ________.

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

The "bottom of the pyramid" refers to ________.

The widespread use of scanner-based computer checkouts has eradicated complaints of retailers overcharging their customers.

Give two examples of product bundle pricing.

Give two examples of products for which marketers might use optional-product pricing.

Which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume purchases, paying early, or participating in sales-support programs?

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?

Why is predatory pricing considered illegal?

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

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

Beach Heaven uses two-part pricing for its holiday resort charges. Because this is a service, the price is broken into a fixed fee for the room plus a(n) ________ usage rate for activities, including kite-sailing and child care.