Question 1

Why do businesses use cash discounts when they are in essence losing some money on the sale?

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Question 2

For what types of products might marketers use market-penetration pricing?

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Question 3

Give two examples of products for which marketers may use optional-product pricing.

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Question 4

Stylish Bamboo manufactures bamboo floorings.In the process of production,the company generates a great deal of scrap bamboo.Which pricing mix strategy should Stylish use,and how does it function?

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Question 5

When are competitors most likely to react to price changes? How can a firm anticipate the likely reactions of its competitors?

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Question 6

For what types of products might marketers use market-skimming pricing?

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Question 7

Describe the differences between dynamic and fixed pricing.

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Question 8

Compare the practices of price fixing and predatory pricing,explaining why each is prohibited by law.

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Question 9

Give two examples of products for which captive product pricing may be used.

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Question 10

Companies bringing out a new product can choose between two broad strategies: market-skimming pricing and market-penetration pricing.Distinguish between the two.

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Question 11

When supermarket raised its store prices 40 percent and then ran a 20 percent off sale,it was guilty of deceptive pricing.

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This is an example of deceptive pricing because even though there was a 20% off sale, the original price had been inflated by 40%, making it seem like a discount when in reality the price was still higher than before the initial price increase.

Question 12

Why is product line pricing used?

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Question 13

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products,the manufacturer is able to reduce the main product's price to make it more competitive.

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By selling the by-products at a price that covers more than the cost of storing and delivering them, the manufacturer can offset some of the costs of producing the main product. This can allow them to lower the price of the main product, making it more competitive in the market.

Question 14

Explain the factors involved in setting international pricing.

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Question 15

The basic difference between customer-segment pricing and product-form pricing is that the latter offers alternative versions of the product that are priced differently but not according to differences in their costs.

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The statement is true. Product-form pricing offers different versions of the product, which vary in features and benefits, and are priced accordingly. However, the cost differences may not be the main factor in pricing these alternatives. Customer-segment pricing, on the other hand, offers different prices to different customer groups based on their willingness to pay or other characteristics, but the product features and benefits remain the same.

Question 16

Explain product line pricing.

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Question 17

Why are there laws to prohibit retail price maintenance?

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Question 18

When a house moving service company sells boxes and pads that must be used in moving a household's furniture,the company is practicing by-product pricing.

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By-product pricing involves setting a price for by-products to make the main product's price more competitive. Selling boxes and pads for moving is more related to product bundling or optional product pricing, not by-product pricing.

Question 19

Discuss under what conditions a company might consider using price cuts or price increases.

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Question 20

For low-price strategy to work,low price must help keep out the competition,and the penetration pricer must maintain its low-price position-otherwise,the price advantage may
be only temporary.

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This statement is true as the key to low-price strategy is to maintain a competitive advantage by attracting customers and keeping them loyal to the brand. If the competition is able to match or beat the low price, then the strategy loses its effectiveness. The company needs to continuously monitor and adjust its pricing strategy to maintain its low-price position.

Quiz 11: Pricing Products: Pricing Strategies