Exam 13: Pricing Strategies

A recent book on consumer buying habits says, "There's no class consciousness about how you shop anymore. People don't think you're white trash if you shop at discount stores." The fact that social class does not dictate what types of prices a person is willing to pay illustrates the great need for _____ to accommodate different perceptions of value.

By definition, a company using a one-price strategy would NOT:

Robbie lives in Alaska and is a frequent buyer of science fiction books from an Internet site. Robbie's brother who lives in South Carolina also buys science fiction books at the same site. Both brothers typically buy six books per month, and Robbie usually pays about $3 more for UPS shipping than his brother. The price differential is most likely due to:

To engage in price competition, an artist's supply store could discount the prices of all of its canvases, offer free brushes as rewards for large purchases, or increase the number of hours during which supplies can be purchased.

If a company gives away its products or charges a price that is below its cost and plans to raise prices later on in order to recoup earlier losses, the company would have engaged in:

Trade discounts will likely be paid when a manufacturer offers to perform the transportation function for a wholesaler.

In which of the following geographic pricing strategies does the seller pay no freight charges?

A(n) _____ strategy is commonly found in buying situations that involve trade-ins.

Critics of FOB factory pricing are usually in favor of uniform delivered pricing because:

Imagine the manufacturer of Claude Montana perfume quotes a retail price of $75 on one bottle of the French designer's signature perfume and offers trade discounts of 30 percent to retailers and 15 percent to wholesalers. The perfume manufacturer would receive _____ per bottle in revenue.

_____ pricing is typically used where freight costs are a small part of the seller's total costs.

The Wine Cabinet, a store that features fine wines from all over the world, consistently prices The Complete Wine Course at $10.99. It sells this book at a price below the store's cost of $25.95 in order to attract wine shoppers to its store and increase its wine sales. In terms of pricing strategy used, this book would be called a:

A manufacturer of water heaters that quoted a retail price of $500 with trade discounts of 20 percent and 20 percent would net $320.

The Robinson-Patman Act is of concern primarily to marketers because of its regulation of:

Salon Selectives introduced its line of Botanical Blends for consumers who were looking for a way to create hair that looked like it had come from a salon, but didn't smell like it. Since there are several existing hair care products already targeted to the same market, Salon Selectives should initially use a _____ pricing strategy.

For featuring Lego blocks prominently in its store window, Child's Heaven, a store that carries educational toys, received a free motorized Ferris wheel kit, valued at $50. This is an example of a:

In _____ pricing, a relatively low initial price is set in order to sell to the mass market immediately.

When Playstation video games were introduced into the United States, they were priced at an introductory price of $299. This price was $100 lower than the Sega games. Playstation used _____ pricing to quickly gain a large share of the market.

Every item in the More Sales retail catalog is priced at $14.99. The catalog carries toys, collectable items, kitchen utensils, exercise equipment, and lamps. It uses a _____ pricing strategy.

_____ is used extensively by retailers of all types of apparel and involves the selection of a limited number of prices at which a store will sell its merchandise.