Exam 13: Pricing Strategies

Which of the following types of retailer is most likely to use a flexible-price strategy?

The rationale for using odd pricing is that it:

When StarSignal introduced its fax machine for receiving and sending color documents, it charged $26,000-a lot more than fax machines usually cost. More than likely, StarSignal was trying to recoup its product development costs by using _____ pricing.

The preprinted price sticker on the goatskin lined work gloves $17.99, but the price had been changed. The new price was $15.99. The higher price was most likely a _____ price.

Kim just purchased a package containing 10 DVD blank disks. Kim can receive a $5 _____ if she mails in her proof or purchase and her cash register receipt to an address on the box.

Citizen watches offers department stores a _____ discount of 5/10, n/30 for prompt payment on their purchases of Citizen watches.

While the prices for most wine brands were falling, and restaurants were canceling wine orders for bottles that cost over $25 apiece, Nickel & Nickel launched a new wine brand selling at $125 per bottle. The goal of this high price was to denote quality and to appeal to people who perceive themselves as wine connoisseurs. Nickel & Nickel used a _____ strategy for its new wine.

For which of the following products would a retailer be LEAST likely to use odd pricing?

When a seller offers a cash discount with terms of 3/10, n/30, buyers pay approximately a _____ rate of annual interest if they do not take the discount.

Apple Computer Inc. introduced its computers to the Japanese market at a low introductory price to appeal to a broader segment of the market and to increase the company's market share. If the original price was below its production costs, and Apple planned to raise prices in Japan later to recoup earlier losses, it would have engaged in:

When the Georgetown Collection prices a limited-edition porcelain collector doll at $145.95 instead of $146, it can be said the retailer is using:

Flat-rate pricing is a variation of the one-price strategy.

The headline on the ad for Post cereal reads, "Breakfast is supposed to be the most important meal of the day. Not the most expensive." The subheading continued, "So we've lowered the price of all our cereals." Post cereal is apparently using _____ pricing.

The liquor distributor gave the liquor store owner a rubber boat for his children to play in at the lake when the store owner agreed to put up an end-of-aisle display promoting Woodbridge brand wines. This is an example of a:

Grainger is a large wholesaler of industrial and commercial equipment, component, and supplies. If the purchase order is for more than $800, the buyer must pay all shipping costs before Grainger will ship the item. This is an example of:

When Jenny Craig, the provider of a national weight loss program, began selling gifts in its December 2004 catalog, it sold activity wear, heart rate monitors, sweat resistant bandages, and lingerie. The prices for all merchandise in its catalog ended in $.99. This tells you that Jenny Craig used a(n) _____ strategy.

The _____ prohibits certain forms of price discrimination when it substantially reduces competition.

Market-penetration pricing for a new product is most likely to be used when:

When Jenny went to purchase an ounce of turmeric to restock her bakery's pantry, she discovered that one once would cost her $6, but that she could purchase 5 ounces of turmeric for $21. This is a form of:

Resale price maintenance: