Question 1

Auto Brite is a manufacturer of car care products. It sells its deluxe care pack for $19.99. The package includes detergent, car wax, tire cleaner and a polishing cloth. This is an example of

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Question 2

The sale of branded products through legal but unauthorized distribution channels is referred to as the

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Question 3

Recent research indicates that approximately ________ of consumers search for and purchase a low-priced product using an in-store shopping app or online search engine.

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Question 4

For an airline, the price of economy-class seats on any given flight may fluctuate over time. For example, the airline may try to fill economy-class seats by lowering the price as the day of the flight draws closer, or try to fill business-class seats first by raising prices on economy tickets. This is an example of

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Question 5

A pricing strategy that involves constantly updating prices to reflect changes in supply, demand, or market conditions is called

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Question 6

If a resort wanted to promote visitors to come during its off-peak times, it would most likely choose which pricing tactic?

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Question 7

Prices that end in ________ are often easier for customers to process and retrieve from memory.

Accepted Answer

Prices ending in 9 are often used in psychological pricing strategies because they are perceived as being lower than they actually are, making them easier for customers to process and remember.

Question 8

Mitch, a marketer for a major retailer, uses the Internet to aggressively review the prices of products sold by his competitors. Accordingly, he constantly updates his prices based on his findings and what changes he sees in consumer demand. What type of pricing strategy is Mitch most likely using?

Accepted Answer

Mitch is using dynamic pricing, a strategy where prices are adjusted in real time based on market demand, competitor prices, and other external factors.

Question 9

A pricing tactic in which a firm prices products a few cents below the next dollar amount is called

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Question 10

Yield management is a strategy for maximizing a firm's

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Question 11

A strategy in which two or more products are packaged together and sold at a single price is called price

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Question 12

The illegal buying and selling of products outside of sanctioned channels is referred to as the

Accepted Answer

The black market refers to the illegal buying and selling of goods and services outside of officially sanctioned channels, often to avoid taxes or because the goods themselves are illegal.

Question 13

Your text notes that technology has helped to shift the balance of power from companies to customers. Which statement exemplifies this concept?

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The Internet enabling customers to comparison shop for products exemplifies the shift of power to customers by providing them with more information and choices, thereby increasing their bargaining power and influence over the market.

Question 14

Prestige pricing involves

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...

Question 15

Drendel's shoe store just received a shipment of women's dress boots. The manufacturer's suggested retail price for the boots is $150.00, but Drendel's decides to price the boots at $149.95. What pricing tactic is Drendel's most likely using?

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Question 16

Which of the following is not true regarding global pricing?

Accepted Answer

Firms face unique challenges when pricing products globally due to factors such as currency fluctuations, local economic conditions, and varying levels of competition in different markets. This makes A incorrect as it suggests there are no unique challenges, which is not true.

Question 17

The amount a product sells for above the total cost of the product itself is called

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Question 18

What technological advancement created for mobile devices has unleashed a new era of pricing transparency for consumers?

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Question 19

If luxury brands such as Hermès clothing, Maserati automobiles, and Gucci purses wanted to promote an image of superior quality and exclusivity to customers, they would most likely use which pricing tactic?

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Question 20

The Sandy Beach resort, a family resort located in Florida, promotes the months of September and October as its vacation value months. During this time, it offers reduced rates on rooms. It does this, in part, because most families don't vacation during this time due to their children being in school. The pricing tactic The Sandy Beach Resort is using to encourage vacationing during these months is most likely

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Quiz 11: Pricing