Exam 11: Pricing Strategies: Additional Considerations

Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?

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

Which of the following would be considered predatory pricing?

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

Which of the following is true of optional-product pricing?

________ occurs when a seller states price savings that are not actually available to consumers.

Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive.

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

Compare the practices of price fixing and predatory pricing. Explain why each is prohibited by law.

Discuss the conditions under which a company might consider using price cuts or price increases.

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 ________.

Which of the following is NOT a cue to consumers about whether a price is high or low?

When are competitors most likely to react to price changes? How can a firm anticipate the likely reactions of its competitors?

Under which type of geographic pricing strategy does each customer take responsibility for the freight charges for the product from the factory to its destination?

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

________ allowances are price reductions given for turning in an old item when buying a new one.

La Belle released a cut glass bottle of perfume at $299 per item, even though its major competitor prices its signature scent at $99 per item. La Belle reasons that customers in search of luxury goods will prefer its product because they are likelier to believe that high price indicates superior quality. What price adjustment strategy is evident in its reasoning?

Constantly reduced prices can erode a brand's value in the eyes of customers.

A lumber mill takes in logs, turns them into 2 x 4's and other sizes needed for building construction. Wood chips created in the milling process are a(n) ________ that can be sold.

________ are formed by noting current prices, remembering past prices, or assessing the buying situation.