Kotler / Armstrong, Chapter 11 Companies have two choices when setting prices for a product during the introductory stage. These choices are _____ and _____.

1. market-skimming pricing; fixed pricing 2. market-skimming pricing; value pricing 3. value pricing; cost pricing 4. market-penetration pricing; market skimming pricing

Kotler / Armstrong, Chapter 11 Companies have two choices when setting prices for a product during the introductory stage. These choices are _____ and _____.

1. market-skimming pricing; fixed pricing 2. market-skimming pricing; value pricing 3. value pricing; cost pricing 4. market-penetration pricing; market skimming pricing

Kotler / Armstrong, Chapter 11 In order for market-penetration pricing to work, which of the following market conditions must be met?

1. The market must not be price sensitive.

2. Production and distribution costs must stay the same as volume increases.

3. The market must be highly price sensitive. 4. none of the above

Kotler / Armstrong, Chapter 11 In order for market-penetration pricing to work, which of the following market conditions must be met?

1. The market must not be price sensitive.

2. Production and distribution costs must stay the same as volume increases.

3. The market must be highly price sensitive.

4. none of the above

Kotler / Armstrong, Chapter 11 Setting price steps between product lines is called _____ pricing.

1. by-product 2. product line 3. product-step 4. price-skimming

Kotler / Armstrong, Chapter 11 Setting price steps between product lines is called _____ pricing.

1. by-product 2. product line 3. product-step 4. price-skimming

Kotler / Armstrong, Chapter 11 Offering to sell accessory products along with the main product is called ________ pricing.

1. optional-product 2. captive-product 3. product-line 4. by-product

Kotler / Armstrong, Chapter 11 Offering to sell accessory products along with the main product is called ________ pricing.

1. optional-product 2. captive-product 3. product-line 4. by-product

Kotler / Armstrong, Chapter 11 When a company offers to sell optional or accessory products along with its main product, this practice is referred to as _____.

1. by-product pricing 2. product line pricing 3. optional-product pricing 4. price-skimming pricing

Kotler / Armstrong, Chapter 11 When a company offers to sell optional or accessory products along with its main product, this practice is referred to as _____.

1. by-product pricing 2. product line pricing 3. optional-product pricing 4. price-skimming pricing

Kotler / Armstrong, Chapter 11 Ordering the #3 meal at a fast food restaurant is using the _____ pricing method.

1. by-product 2. captive-product 3. product line 4. product bundle

Kotler / Armstrong, Chapter 11 Ordering the #3 meal at a fast food restaurant is using the _____ pricing method.

1. by-product 2. captive-product 3. product line 4. product bundle

Kotler / Armstrong, Chapter 11 Because of _____ pricing, Sony’s PlayStation games generate more than a third of the company’s profits.

1. by-product 2. product line 3. optional-product 4. captive-product

Kotler / Armstrong, Chapter 11 Because of _____ pricing, Sony’s PlayStation games generate more than a third of the company’s profits.

1. by-product 2. product line 3. optional-product 4. captive-product

Kotler / Armstrong, Chapter 11 Which of the following is not a price adjustment strategy?

1. psychological 2. dynamic 3. geographic 4. domestic

Kotler / Armstrong, Chapter 11 Which of the following is not a price adjustment strategy?

1. psychological 2. dynamic 3. geographic 4. domestic

Kotler / Armstrong, Chapter 11 A reduction given to buyers who pay their bills promptly, such as “2/10, net 30,” is called a _____ discount. 1. cash 2. prepay 3. trade 4. buyer

Kotler / Armstrong, Chapter 11 A reduction given to buyers who pay their bills promptly, such as “2/10, net 30,” is called a _____ discount. 1. cash 2. prepay 3. trade 4. buyer

Kotler / Armstrong, Chapter 11 Marketers who purchase large quantities of products at the same time may receive a _____ discount.

1. cash 2. reseller 3. rebate 4. quantity

Kotler / Armstrong, Chapter 11 Marketers who purchase large quantities of products at the same time may receive a _____ discount.

1. cash 2. reseller 3. rebate 4. quantity

Kotler / Armstrong, Chapter 11 _____ discounts are often given to retailers in order to encourage early ordering in anticipation of heavy selling seasons.

1. Functional 2. Reseller 3. Seasonal 4. Quantity

Kotler / Armstrong, Chapter 11 _____ discounts are often given to retailers in order to encourage early ordering in anticipation of heavy selling seasons.

1. Functional 2. Reseller 3. Seasonal 4. Quantity

Kotler / Armstrong, Chapter 11 Which of the following is not an example of segmented pricing?

1. customer segment 2. time 3. location 4. sales promotion

Kotler / Armstrong, Chapter 11 Which of the following is not an example of segmented pricing?

1. customer segment 2. time 3. location 4. sales promotion

Kotler / Armstrong, Chapter 11 Yield (revenue) management pricing is often practiced by which of the following?

1. airlines 2. restaurants 3. hotels 4. all of the above

Kotler / Armstrong, Chapter 11 Yield (revenue) management pricing is often practiced by which of the following?

1. airlines 2. restaurants 3. hotels 4. all of the above

Kotler / Armstrong, Chapter 11 Reference prices are prices that buyers carry around in their minds and refer to when looking at a product.

1. true 2. false

Kotler / Armstrong, Chapter 11 Reference prices are prices that buyers carry around in their minds and refer to when looking at a product.

1. true 2. false

Kotler / Armstrong, Chapter 11 If your customers usually perceive higher price products as having higher quality, you would consider using ______ pricing.

1. psychological 2. emotional 3. rational 4. cost-based

Kotler / Armstrong, Chapter 11 If your customers usually perceive higher price products as having higher quality, you would consider using ______ pricing.

1. psychological 2. emotional 3. rational 4. cost-based

Kotler / Armstrong, Chapter 11 For most purchases, consumers don’t have all the skills or information they need to figure out if they are paying a good price.

1. true 2. false

Kotler / Armstrong, Chapter 11 For most purchases, consumers don’t have all the skills or information they need to figure out if they are paying a good price.

1. true 2. false

Kotler / Armstrong, Chapter 11 Temporarily pricing your product below list price or even below cost is called _____ pricing.

1. blue light 2. retail 3. promotional 4. psychological

Kotler / Armstrong, Chapter 11 Temporarily pricing your product below list price or even below cost is called _____ pricing.

1. blue light 2. retail 3. promotional 4. psychological

Kotler / Armstrong, Chapter 11 _____ pricing is used for market penetration and to hold on to increasingly competitive markets.

1. FOB-origin 2. Uniform-delivered 3. Basing-point 4. Freight-absorption

Kotler / Armstrong, Chapter 11 _____ pricing is used for market penetration and to hold on to increasingly competitive markets.

1. FOB-origin 2. Uniform-delivered 3. Basing-point 4. Freight-absorption

Kotler / Armstrong, Chapter 11 Which of the following is a reason for a firm to consider a price cut? 1. The firm has excess capacity. 2. The firm has falling market share due to price competition.

3. The firm wants to dominate the market through lower costs. 4. all of the above

Kotler / Armstrong, Chapter 11 Which of the following is a reason for a firm to consider a price cut? 1. The firm has excess capacity. 2. The firm has falling market share due to price competition.

3. The firm wants to dominate the market through lower costs. 4. all of the above

Kotler / Armstrong, Chapter 11 The _____ seeks to prevent unfair price discrimination by ensuring that sellers offer the same price to customers at a given level of trade.

1. Anderson-Lieberman Act 2. Robinson-Patman Act 3. Sherman Act 4. Clayton Act

Kotler / Armstrong, Chapter 11 The _____ seeks to prevent unfair price discrimination by ensuring that sellers offer the same price to customers at a given level of trade.

1. Anderson-Lieberman Act 2. Robinson-Patman Act 3. Sherman Act 4. Clayton Act