Week 9 Warmup

Price ceilings are set by customer perceptions of the product's value. Which of the following sets the floor for the price that a company charges?

A.

Product costs

B.

Revenue projections

C.

Customers

D.

Competitors

E.

Market conditions

A.

Product costs

Marketers use three major pricing strategies: _____________.

A.

customer value-based pricing, cost-based pricing, and government-based pricing

B.

demand-based pricing, revenue-based pricing, and government-based pricing

C.

demand-based pricing, cost-based pricing, and competition-based pricing

D.

customer value-based pricing, cost-based pricing, and competition-based pricing

E.

customer value-based pricing, cost-based pricing, and revenue-based pricing

D.

customer value-based pricing, cost-based pricing, and competition-based pricing

Marketers must consider external considerations in establishing pricing. Which of the following represents those external considerations?

A.

The nature of the market, globalization, and environmental factors

B.

Demand, marketing strategy, and the reaction of competitors

C.

Marketing strategy, environmental factors, and distribution channels

D.

The nature of the market, demand, and environmental factors

E.

Demand, revenue objectives, and stakeholder requirements

D.

The nature of the market, demand, and environmental factors

A company's pricing strategy is affected by internal factors such as __________.

A.

overall marketing strategy, objectives, demand, and international considerations

B.

the nature of the market, demand, objectives, and the economy

C.

overall marketing strategy, objectives, marketing mix, and organizational considerations

D.

overall marketing strategy, objectives, marketing mix, and market type

E.

overall marketing strategy, marketing mix, elasticity, and demand

C.

overall marketing strategy, objectives, marketing mix, and organizational considerations

A skimming pricing strategy is most likely to succeed for which of the following conditions?

A.

Competitors should not be able to enter the market quickly.

B.

Buyers are not willing to pay the higher price.

C.

The product quality does not support the higher price.

D.

The product image does not support the higher price.

E.

Competitors will undercut the price.

A.

Competitors should not be able to enter the market quickly.

Which of the following pricing strategies would a company use to attract a large number of buyers quickly and win a large market share?

A.

By-product pricing

B.

Optional-product pricing

C.

Market-skimming pricing

D.

Market-penetration pricing

E.

Captive-product pricing

D.

Market-penetration pricing

Of the following, which is NOT one of the product-mix pricing situations?

A.

Optional-product pricing

B.

Product bundle pricing

C.

Penetration pricing

D.

Product line pricing

E.

Captive-product pricing

C.

Penetration pricing

When Microsoft or Apple sells software as a package, it is engaging in what type of pricing?

A.

Captive-product pricing

B.

Product-bundle pricing

C.

By-product pricing

D.

Product line pricing

E.

Break-even pricing

B.

Product-bundle pricing

Marketers adjust prices based on ________ pricing, whereby different customers pay different prices for the same product or service.

A.

product form

B.

seasonal-based

C.

time-based

D.

location-based

E.

customer-segment

E.

customer-segment

Which of the following statements is correct regarding price changes?

A.

A company that wishes to dominate a market could potentially do so by lowering its prices.

B.

When costs go up, companies should automatically increase prices.

C.

A price increase will always lower sales.

D.

When changing price, a company should focus on buyers and not worry about competitors.

E.

A brands price and image are unrelated.

A.

A company that wishes to dominate a market could potentially do so by lowering its prices.

When competitors set prices by talking with each other, they are engaging in which of the following?

A.

Price-fixing

B.

Predatory pricing

C.

Price discrimination

D.

Deceptive pricing

E.

Price maintenance

A.

Price-fixing

A mega-retailer opens a store in a new area. They charge prices that are below cost to drive local stores out of business. This retailer has engaged in which of the following?

A.

Price-fixing

B.

Predatory pricing

C.

Price maintenance

D.

Price discrimination

E.

Price gouging

B.

Predatory pricing