Question 1

Describe when each of the following five business-to-business pricing tactics would be most appropriate:
• seasonal discounts
• cash discounts
• allowances
• quantity discounts
• uniform delivered versus zone pricing

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Question 2

At Ben's college,the local Dunkin' Donuts gives a 10 percent discount to students.Is this price discrimination? Why or why not?

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Question 3

What are slotting allowances? Why do some marketers consider them unfair?

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Question 4

What is predatory pricing? What federal acts make it illegal? How are consumers hurt by predatory pricing?

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Question 5

What is the added benefit to a manufacturer of using rebates rather than coupons?

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Question 6

What is the advantage to a business of price bundling? What is the advantage to a consumer?

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Question 7

How does a loss leader strategy work? What is the danger of using this strategy?

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Question 8

Why would the manufacturer of custom-made yachts not use a market penetration strategy?

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Question 9

Wilbur sells homemade hot dogs from his stand next to campus.Students flock to his stand to buy his hot dogs,but rarely anything else.What type of pricing strategy could Wilbur use to improve his sales? Create an example.

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Question 10

Why do manufacturers set manufacturer's suggested retail prices (MSRP)? How do they enforce this practice? Is it legal?

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Question 11

Most automobile manufacturers appear to use price lining.What is price lining and how does it relate to value-based pricing for automobile manufacturers?

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Question 12

What is the experience curve effect? What pricing strategy is it associated with?

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Question 13

Marketers know that coupons might not result in a net increase in sales,yet they continue to issue them.Why do marketers continue to use coupons?

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Question 14

Explain the meaning of "2 / 10,n / 30."

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Question 15

Why would a price skimming strategy probably not work for a "me-too" product,something very similar to a new-to-the-market product?

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Quiz 15: Strategic Pricing Methods

Describe when each of the following five business-to-business pricing tactics would be most appropriate: • seasonal discounts • cash discounts • allowances • quantity discounts • uniform delivered versus zone pricing