Deck 11: Pricing Products and Services

Question 1

Vizio, Inc. is the largest contender in the North American __________ market.

A)designer eyewear
B)virtual media
C)Smart TV
D)3D video game
E)exotic travel

Answer 1

C

Question 2

In order to deliver a product that the average consumer can afford, Vizio

A)handles product design and marketing in the United States and relies on contract manufacturers in other countries to build the product.
B)uses mass customization in other countries and then ships the HDTVs to the United States.
C)purchased a small company in China to distribute its products under the Vizio name.
D)purchased a small company in Japan to distribute its products under the Vizio name.
E)relies solely on recycled materials to build high quality, no-frills products.

Answer 2

A

Question 3

Barter is the practice of exchanging products and services for other products and services rather than for __________.

A)value
B)ideas
C)promises
D)tariffs
E)money

Answer 3

E

Question 4

The use of special fees and surcharges is driven by consumers' zeal for __________ combined with the ease of making price comparisons on the Internet.

A)high prices
B)low prices
C)quality
D)value
E)warranties

Question 5

Barter refers to

A) a reciprocity agreement stipulating that if company A purchases services from company B, then company B must purchase similar services from company A.
B) a tying agreement stipulating that if company A purchases a product from company B, it must also purchase one of its services.
C) the practice of exchanging products and services for other products and services rather than for money.
D) the practice of exchanging services for products of equal or greater value.
E) the practice of exchanging products and services for money.

Question 6

Attorneys' fees, entrance fees, train fares, and organization dues are all examples of

A)premiums.
B)barter.
C)profit.
D)price.
E)outlays.

Question 7

Susan O'Rourke hired an attorney to represent her in a court case involving an auto accident. The attorney charged O'Rourke a $2,000 retainer fee for his services. Terry Thomas needed a haircut - the local stylist charged him $12 for her services. Aaron Mathison mowed his neighbor's lawn; in exchange, the neighbor roto-tilled Mathison's garden. The attorney fees paid by O'Rourke, the $12 charged by the hair stylist, and the exchange of lawn mowing for garden tilling are all examples of

A)premiums.
B)barter.
C)the profit motive.
D)price.
E)outlays.

Question 8

All of the following statements about price are true EXCEPT:

A)Small changes in price can have big effects on both the number of units sold and company profit.
B)The price for a product or service must earn a profit for the company.
C)For most products and services, their prices are always the same.
D)The price must be right - in the sense that customers must be willing to pay it.
E)The price must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product.

Question 9

The use of special fees and surcharges is driven by consumers' zeal for low prices and __________.

A)the ease of making price comparisons on the Internet
B)value, the idea of getting "more" for their money
C)the need for extra accessories
D)avoiding state sales taxes from Internet purchases
E)a dislike of price haggling or negotiating

Question 10

North America's largest Smart TV company is

A)Samsung.
B)Panasonic.
C)LG.
D)Sony.
E)Vizio.

Question 11

According to Vizio, "The whole goal is to ensure that we have the right product, at the right time and the right price and __________."

A)forever rid the world of plugs and wires
B)create customer value that is unmatched in the industry
C)deliver it to the right people
D)at the right place
E)drive a seamless end-to-end value chain

Question 12

All of the following are synonyms for price EXCEPT:

A)a premium.
B)barter.
C)tuition.
D)a commission.
E)profit.

Question 13

According to the price equation, final price equals list price minus __________ plus extra fees.

A)profits
B)commissions
C)trade-ins
D)taxes
E)incentives and allowances

Question 14

Which of the following is an example of a price?

A)college tuition
B)operating costs
C)liquidity
D)value
E)stockholders' equity

Question 15

The money or other considerations (including other products and services) exchanged for the ownership or use of a product or service is referred to as __________.

A)a fee
B)value
C)renumeration
D)price
E)an exchange rate

Question 16

From a marketing viewpoint, __________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

A)value
B)price
C)barter
D)currency
E)a tariff

Question 17

The practice of exchanging products and services for other products and services rather than for money is referred to as __________.

A)barter
B)reciprocal pricing
C)virtual pricing
D)balance of payments
E)value-pricing

Question 18

According to the price equation, final price equals __________ minus incentives and allowances plus extra fees.

A)salaries
B)list price
C)profits
D)trade-ins
E)taxes

Question 19

Vizio's HDTVs are sold through all of the following types of retailers EXCEPT:

A)Amazon.com.
B)mass merchandisers, such as Target.
C)its own company stores.
D)wholesale club stores such as Sam's Club.
E)electronics stores such as Best Buy.

Question 20

Price refers to

A)the value assigned to the exchange of products and services for other products and services.
B)the value judgment made by both the buyer and seller regarding an item's worth.
C)the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.
D)the value assessed for the benefits of using a product or service.
E)the highest monetary value a customer is willing to pay for a product or servicE.Key term definition - price.

Question 21

The formula, Total revenue - Total cost or [(Unit price × Quantity sold) - (Fixed cost + Variable cost)] represents __________.

A)the value equation
B)the sales ratio
C)average revenue
D)the break-even point
E)the profit equation

Question 22

A firm's profit equation demonstrates that profit equals __________.

A)Total cost + Total revenue
B)Total revenue - Total cost
C)Marginal revenue - Marginal cost
D)Price × Quantity
E)Total revenue + Marginal cost

Question 23

The ratio of perceived benefits to price is referred to as

A)the price-quality relationship.
B)customer value pricing.
C)value-added pricing.
D)value analysis.
E)valuE.Key term definition - value.

Question 24

Which of the following statements is most accurate?

A)For some products, price influences the perception of overall quality, and ultimately value, to consumers.
B)A consumer's view of a product's value is always tied to quality.
C)A consumer's view of value is a function of his or her education and income.
D)Price plays only a small part in a consumer's perceived value of a product or service.
E)Price plays a large role in assessing value but a very minor role in assessing quality.

Question 25

To increase value, marketers may __________, decrease price, or do both.

A)decrease benefits
B)increase benefits
C)increase price
D)increase advertising
E)do nothing and let the perceived value of the item increase as it matures in the life cycle

Question 26

A company that manages apartments decides to buy 15 new dishwashers at a list price of $550 each as replacements for a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150-per-unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for 15 used trade-ins. What is the final price the company will pay for EACH dishwasher?

A)$390
B)$400
C)$410
D)$430
E)$730

Question 27

Tara is enrolled for spring semester at college. The tuition is $6,000, but she has a scholarship for $1,000 as well as a work-study grant of $1,500. The health fees and student activity fees are $150 for the semester. What is the final price that Tara will pay for the spring semester?

A)$2,500
B)$2,650
C)$3,150
D)$3,650
E)$6,150

Question 28

Suppose you want to buy an all-electric Tesla Model S, the world's leading all-electric, zero-emission car that has a 265-mile range and can be recharged in three hours. The Tesla Model S Performance model has a list price of $87,500. However, you want several options (Performance Plus Package, red multi-coat armor paint, Tech package, Sound Studio Package, home charging station, performance wheels, and others) that will cost $17,500. An extended warranty will add an additional $5,000. However, if you put $50,000 down now and finance the balance over the next year, you will receive a dealer rebate of $5,000 off the list price. The dealer will give you a $7,000 trade-in allowance for your 2008 Honda Civic DX four-door sedan. In addition, you will have to pay a state sales tax of $10,000, an auto registration fee of $1,000 to the state, and a $1,000 destination charge to ship and prep the car. But because the Tesla Model S is an alternative energy vehicle, you qualify for a $2,500 state rebate and a $7,500 federal tax credit! Finally, your total finance charge is $7,000. Applying the price equation, what is your final price for the Tesla Model S?

A)$57,000
B)$68,000
C)$87,500
D)$107,000
E)$151,000

Question 29

Calculate a firm's total revenue (TR) using the following information: the unit price (P) for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and the variable cost (VC) is $20,000.

A)$10,000
B)$50,000
C)$110,000
D)$150,000
E)cannot be determined with the information provided

Question 30

Most consumers realize that the quality of diamonds varies, and most believe the higher the price of a diamond, the higher its quality. This is an example of price influencing the perception of overall quality, and therefore __________ to consumers.

A)acceptable cost
B)perceptual investment
C)barter potential
D)return on investment
E)value

Question 31

A reference value involves comparing the costs and benefits of __________.

A)substitute items
B)items of equal or greater value
C)products with which a consumer is familiar and items the consumer has not seen or used before
D)items from one particular distributor
E)intangible items

Question 32

According to the price equation, a product's or service's final price equals its list price minus incentives and allowances plus

A)profits.
B)commissions.
C)trade-ins.
D)extra fees.
E)taxes.

Question 33

If you wanted to buy a McDonald's Big Mac, small fries, and a small drink separately, it will you cost you $6.19. However, if you purchased these three items together as part of the firm's Extra Value Meal package, you would pay only $4.39, savings 80 cents. This "Extra Value Meal" price serves as __________ to you and other consumers, who compare the costs and benefits of substitute items to a bundle containing those items.

A)a marginal analysis
B)a profit equation
C)a reference value
D)a break-even analysis
E)price elasticity of demand

Question 34

The ratio of perceived benefits to __________ is referred to as value.

A)price
B)prestige
C)perceived quality
D)profits
E)perceived costs

Question 35

A firm's profit equation equals

A)Total cost + Total revenue or [(Fixed cost + Variable cost) + (Unit price × Quantity sold)].
B)Total revenue - Total cost or [(Unit price × Quantity sold) - (Fixed cost + Variable cost)].
C)Total cost - Marginal cost or [(Fixed cost + Variable cost) - (Unit price × Quantity sold)].
D)Total cost - Variable cost or [(Fixed cost + Variable cost) - (Unit price × Quantity sold)].
E)Total revenue/Total cost or [(Unit price × Quantity sold) ÷ (Fixed cost + Variable cost)].

Question 36

In the purchase of the sugar substitute Splenda, you may compare it to something you know about like real sugar. Although Splenda is more expensive than sugar, is purchased by many consumers because it contains no calories. This situation involves the consumer considering

A)a marginal analysis.
B)a profit equation.
C)a break-even analysis.
D)price elasticity of demand.
E)a reference valuE.Value involves the judgment by a consumer of the worth and desirability of a product or service relative to substitutes that satisfy the same need. In this instance a reference value emerges, which involves comparing the costs and benefits of substitute items.

Question 37

The ratio of __________ to price is referred to as value.

A)prestige value
B)perceived benefits
C)costs
D)perceived quality
E)profits

Question 38

A reference value __________.

A)is relative to the amount of time and energy a consumer puts into the purchase process
B)is based upon the value assigned to similar items used by the consumer's peers
C)results from performing a careful break-even analysis
D)involves comparing the costs and benefits of substitute items
E)is based upon the differential between customers' needs and wants

Question 39

The __________ equation = (Unit price × Quantity sold) - Total cost.

A)total revenue
B)variable cost
C)net present value
D)profit
E)break-even point

Question 40

To increase value the most, marketers should

A)decrease benefits.
B)decrease benefits and increase price.
C)decrease price and increase benefits.
D)decrease price and decrease benefits.
E)do nothing and let the perceived value of the item increase as it matures in its life cyclE.To increase value, marketers may increase benefits, decrease price, or do both according to the value formula: value = perceived benefits ÷ price.

Question 41

The key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point. Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) profit-oriented; and (4) __________ approaches.

A)revenue-oriented
B)distribution-oriented
C)stakeholder-oriented
D)competition-oriented
E)cause-oriented

Question 42

Demand-oriented approaches weigh factors that underlie expected __________ more heavily than such factors as cost, profit, and competition when selecting a price level.

A)total revenue
B)stakeholder concerns
C)prevailing prices
D)product substitutes
E)customer tastes

Question 43

All of the following are demand-oriented approaches to selecting an approximate price level EXCEPT:

A)odd-even.
B)yield management.
C)customary.
D)bundle.
E)prestigE.Demand-oriented pricing approaches to select an approximate price level include skimming, penetration, prestige, price lining, odd-even, target, bundle, and yield management pricing strategies.

Question 44

Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product is referred to as a

A)skimming strategy.
B)penetration strategy.
C)price-lining strategy.
D)experience-curve pricing strategy.
E)prestige pricing strategy.

Question 45

Skimming pricing is a strategy that introduces a new or innovative product by

A)following a price elastic strategy.
B)creating multiple price points.
C)setting a high initial price.
D)setting a low initial price.
E)setting the price at the average of competitors' prices.

Question 46

A skimming pricing policy is likely to be most effective when

A)consumers perceive one product to be similar to other products on the market.
B)a lower price will significantly lower fixed costs.
C)competitors will be attracted to the market due to the potential for high sales revenues.
D)consumers tend to be price sensitive.
E)the high initial price will not attract competitors.

Question 47

A skimming pricing policy is likely to be most effective when

A)consumers tend to be price sensitive.
B)it will be easier to set measurable sales unit goals.
C)a lower price will significantly lower fixed costs.
D)consumers perceive your product to be similar to other products on the market.
E)customers are willing to buy immediately at the high initial pricE.A skimming pricing strategy, which entails setting a high initial price, is most effective when: (1) enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable; (2) the high initial price will not attract competitors; (3) lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost; and (4) customers interpret the high price as signifying high quality.

Question 48

The key to setting a price for a product is finding an approximate price level to use as a reasonable starting point. Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) cost-oriented; (3) __________; and (4) competition-oriented approaches.

A)stakeholder-oriented
B)revenue-oriented
C)profit-oriented
D)distribution-oriented
E)cause-oriented

Question 49

Skimming pricing is considered to be a __________ approach to pricing.

A)demand-oriented
B)cost-oriented
C)profit-oriented
D)competition-oriented
E)service-oriented

Question 50

A manufacturer of a digital video recorder (DVR) is thinking of using a skimming pricing strategy for its new product. Which of the following conditions would argue AGAINST using a skimming pricing strategy for the DVR?

A)large potential market, even at a high price
B)technological problems still exist for competitors
C)increasing volume reduces production costs substantially
D)consumers perceive a price-quality relationship
E)consumers are innovators

Question 51

A skimming pricing policy is likely to be most effective when

A)lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost.
B)consumers tend to be price sensitive.
C)it will be easier to set measurable sales unit goals.
D)a lower price will significantly lower fixed costs.
E)consumers perceive your product to be similar to other products on the market.

Question 52

-Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box B includes standard markup and cost-plus so it represents which approach?

A)demand-oriented approach
B)profit-oriented approach
C)competition-oriented approach
D)results-oriented approach
E)cost-oriented approach

Question 53

-Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box C includes target profit and target return on sales so it represents which approach?

A)demand-oriented approach
B)profit-oriented approach
C)competition-oriented approach
D)cost-oriented approach
E)results-oriented approach

Question 54

-Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box A represents which approach?

A)cost-oriented approach
B)profit-oriented approach
C)competition-oriented approach
D)demand-oriented approach
E)results-oriented approach

Question 55

The key to setting a final price for a product is finding an approximate price level to use as a reasonable starting point. Four common approaches to selecting an approximate price level are: (1) demand-oriented; (2) __________; (3) profit-oriented; and (4) competition-oriented approaches.

A)cost-oriented
B)cause-oriented
C)revenue-oriented
D)stakeholder-oriented
E)distribution-oriented

Question 56

Which of the following statements about the price-setting process is most accurate?

A)When selecting a strategy for setting an initial price, it does not matter which one you use as long as you stick with it.
B)Sometimes pricing strategies overlap, and a seasoned marketer will consider several strategies when choosing an approximate price level.
C)Demand-oriented pricing approaches rely heavily on competitors' prices.
D)Skimming pricing is a competition-oriented pricing strategy.
E)Penetration pricing is the best pricing strategy for companies trying to meet the goals of a profit-oriented pricing approach.

Question 57

-Figure 11-2 above represents the four approaches to selecting an appropriate price level. Box D includes customary and loss leader so it represents which approach?

A)competition-oriented approach
B)cost-oriented approach
C)profit-oriented approach
D)results-oriented approach
E)demand-oriented approach

Question 58

Skimming pricing refers to

A)setting the lowest initial price possible when introducing a new or innovative product in order to skim sales from competitors.
B)setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product.
C)setting a low initial price on a new product to appeal immediately to the mass market.
D)the practice of replacing promotional allowances with higher manufacturer list prices.
E)setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Question 59

When microwave ovens were in the introduction stage of their product life cycle, some consumers were willing to pay exorbitant prices for these innovative ovens. Taking advantage of this strong consumer desire, marketers set the price for microwave ovens at the highest initial price possible. Marketers of microwave ovens used a __________ pricing strategy.

A)skimming
B)penetration
C)prestige
D)price lining
E)bundle

Question 60

A skimming pricing policy is likely to be most effective when

A)consumers perceive your product to be similar to other products on the market.
B)a lower price will significantly lower fixed costs.
C)customers interpret the high price as signifying high quality.
D)consumers tend to be price sensitive.
E)it will be easier to set measurable sales unit goals.

Question 61

The pricing strategy that is almost the exact opposite of skimming pricing is

A)target pricing.
B)penetration pricing.
C)price lining.
D)odd-even pricing.
E)prestige pricing.

Question 62

Penetration pricing is intended to appeal to which market?

A)highly selective, quality-seeking consumers
B)price-insensitive markets
C)specialty product markets
D)the same markets as those targeted with a skimming pricing strategy
E)the mass market

Question 63

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as

A)skimming pricing.
B)status pricing.
C)price lining.
D)value pricing.
E)prestige pricing.

Question 64

The first Apple iPad was introduced in 2010 at an initial price of $650 for the 16 GB version. People waited in line overnight so they could be one of the first to own this unique tablet device. Which pricing strategy did Apple use to help recoup its research and development costs for the iPad?

A)price lining
B)penetration pricing
C)skimming pricing
D)customary pricing
E)target pricing

Question 65

Prestige pricing refers to

A)charging different prices to different buyers for goods of like grade and quality.
B)setting a low initial price on a new product to appeal immediately to the mass market odd-even pricing.
C)setting a market price for a product or product class based on a subjective feel for the competitors' price or market price.
D)setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.
E)setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.

Question 66

A penetration pricing policy is most likely to be effective when

A)lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost.
B)many segments of the market are price sensitive.
C)the high initial price will not attract competitors.
D)customers interpret the high price as signifying high quality.
E)enough prospective customers are willing to buy immediately at the high initial price to make these sales profitablE.The conditions favoring penetration pricing are the reverse of those supporting skimming pricing: (1) many segments of the market are price sensitive; (2) a low initial price discourages competitors from entering the market; and (3) unit production and marketing costs fall dramatically as production volumes increase.

Question 67

Prestige pricing is considered to be a __________ approach to pricing.

A)demand-oriented
B)cost-oriented
C)profit-oriented
D)competition-oriented
E)service-oriented

Question 68

Which of the following statements about penetration pricing is most accurate?

A)Penetration pricing is a profit-oriented approach to pricing.
B)Penetration pricing is a cost-oriented pricing method.
C)Penetration pricing encourages competitors to enter a market.
D)Penetration pricing is more effective in a marketplace with price-sensitive consumers.
E)Penetration pricing usually precedes a skimming pricing.

Question 69

Wrigley recently introduced a new flavor of Orbit brand sugar free chewing gum - mint mojito. The introductory price was low so that it quickly created loyal customers for the flavor. In this example, Wrigley used

A)skimming pricing.
B)penetration pricing.
C)price lining.
D)odd-even pricing.
E)loss-leader pricing.

Question 70

The first Apple iPhone was introduced in 2007 at an initial price of $600. People waited in line overnight so they could be one of the first to own this unique smartphone. Which pricing strategy did Apple use to help recoup its research and development costs for the smartphone?

A)penetration pricing
B)experience curve pricing
C)customary pricing
D)skimming pricing
E)target pricing

Question 71

The manufacturer of a new kind of fat-free ice cream that has the consistency and taste of regular ice cream is thinking of using a penetration pricing strategy for its new product. Which of the following conditions would argue AGAINST using a penetration pricing strategy for the tasty dessert treat?

A)The ice cream market is highly conservative.
B)Economies of scale in production would be substantial.
C)Retailers are not willing to carry new brands of ice cream in the already overcrowded category.
D)Once the initial price is set, it is nearly impossible to lower the price without alienating early buyers.
E)The ice cream market exhibits inelastic demand over a fairly broad range of prices.

Question 72

When Hallmark cards introduced a line of 99-cent cards (about half the price of the previously least expensive cards it sold), the greeting card company was trying to appeal to a mass market that was price sensitive. Hallmark was using a __________ pricing strategy.

A)prestige
B)skimming
C)target ROI
D)penetration
E)experience-curve

Question 73

Hallmark was an official supplier at the Winter Olympics. Hallmark presented each Olympic winner with a special bouquet of roses designed to resemble the Olympic torch. Consumers could buy a smaller version of this bouquet at the Hallmark website for $74.95. The Olympic bouquet contained two dozen yellow roses, yet one could buy two dozen yellow roses for less than $35 at most supermarkets. With the Olympic bouquet Hallmark appealed to flower buyers that wanted to make a statement, so it used which demand-oriented pricing approach?

A)bundle pricing
B)yield management pricing
C)skimming pricing
D)target return-on-sales pricing
E)penetration pricing

Question 74

Talbot's sells women's clothes. A longsleeve scoopneck t-shirt with the Talbot's label costs $45. By comparison, you can buy a t-shirt for $5 at a Family Dollar Store, but it won't have the prestigious Talbot's label or quality. What kind of demand-oriented approach to pricing does Talbot's use?

A)experience curve pricing
B)skimming pricing
C)demand-backward pricing
D)prestige pricing
E)flexible pricing

Question 75

A penetration pricing policy is most likely to be effective when

A)unit production and marketing costs fall dramatically as production volumes increase.
B)enough prospective customers are willing to buy immediately at the high initial price to make these sales profitable.
C)lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost.
D)the high initial price will not attract competitors.
E)customers interpret the high price as signifying high quality.

Question 76

A penetration pricing policy is most likely to be effective when

A)lowering the price has only a minor effect on increasing the sales volume and reducing the unit cost.
B)the high initial price will not attract competitors.
C)a low initial price discourages competitors from entering the market.
D)customers interpret the high price as signifying high quality.
E)enough prospective customers are willing to buy immediately at the high initial price to make these sales profitablE.The conditions favoring penetration pricing are the reverse of those supporting skimming pricing: (1) many segments of the market are price sensitive; (2) a low initial price discourages competitors from entering the market; and (3) unit production and marketing costs fall dramatically as production volumes increase.

Question 77

Penetration pricing is considered to be a __________ approach to pricing.

A)demand-oriented
B)cost-oriented
C)profit-oriented
D)competition-oriented
E)service-oriented

Question 78

When Amazon introduced the Kindle Fire tablet device at $199 while Apple was selling the lowest price iPad for $499, Amazon was using a __________ pricing strategy.

A)skimming
B)target
C)bundle
D)penetration
E)loss-leader

Question 79

Penetration pricing refers to

A)charging different prices to different buyers for goods of like grade and quality.
B)setting the highest initial price that customers really desiring the product are willing to pay.
C)setting a low initial price on a new product to appeal immediately to the mass market.
D)setting a market price for a product or product class based on a subjective feel for the competitors' prices or market price.
E)setting prices a few dollars or cents under an even number.

Question 80

A manufacturer using __________ is setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

A)skimming pricing
B)penetration pricing
C)price lining
D)odd-even pricing
E)prestige pricing