Question 1

Stores like Dollar Bills, where everything is priced at one dollar, and Just $8, where all clothing is priced at $8, are examples of retailers that use the _____ strategy.

Accepted Answer

The answer of Stores like Dollar Bills, where everything is...

Question 2

Orvis, the catalog retailer, sells men's dress slacks for $49, $59, and $69. This method, which is used to simplify buying decisions, is called _____ _____.

Accepted Answer

The answer of Orvis, the catalog retailer, sells men's dress...

Question 3

_____ _____ _____ occurs when manufacturers seek to control the prices at which middlemen resell their  products.

Accepted Answer

The answer of _____ _____ _____ occurs when manufacturers seek...

Question 4

When McDonald's advertises a $.99 Big Mac, Burger King often retaliates with a Whopper at the same price. Before long, Wendy's, Hardee's, and other hamburger franchises are also slashing prices. Such activity is called a _____ _____.

Accepted Answer

The answer of When McDonald's advertises a $.99 Big Mac,...

Question 5

Due to a number of layoffs in the technology industry, there are many technology experts who are unemployed. Some saw an opportunity to become a third-party suppliers of tech support, especially after they became aware that even handling a small problem for a major company can cost $20. One of the new services is called GeekHelp. When the service was introduced to the market, the entrepreneur who started the company announced it has the cheapest per-minute rate of any of the tech support companies. Another one called Ask Dr. Tech charges a fee of $299 per year to provide tech support for a small business. Because some consumers cannot explain what is wrong with their computers beyond the fact it will not work, GeekXpress will make house calls to organization members who pay a fee of $35 per month. When it added house calls to its services, it did not raise its prices.
-The decision on what to charge would be part of these companies':
A) tactics.
B) rules and regulations.
C) organizational policies.
D) operating tenets.
E) strategies.

Accepted Answer

Strategies are the overall plans and actions that a company takes to achieve its goals. The decision on what to charge would be part of these companies' strategies because it is a key part of their overall plan to achieve their goals of profitability and growth.

Question 6

Due to a number of layoffs in the technology industry, there are many technology experts who are unemployed. Some saw an opportunity to become a third-party suppliers of tech support, especially after they became aware that even handling a small problem for a major company can cost $20. One of the new services is called GeekHelp. When the service was introduced to the market, the entrepreneur who started the company announced it has the cheapest per-minute rate of any of the tech support companies. Another one called Ask Dr. Tech charges a fee of $299 per year to provide tech support for a small business. Because some consumers cannot explain what is wrong with their computers beyond the fact it will not work, GeekXpress will make house calls to organization members who pay a fee of $35 per month. When it added house calls to its services, it did not raise its prices.
-GeekXpress uses _____ pricing.
A) fair-trade
B) value
C) psychological
D) penetration
E) cost-plus

Accepted Answer

GeekXpress uses value pricing, as it offers additional services (house calls) without raising prices, providing more value to its customers.

Question 7

Due to a number of layoffs in the technology industry, there are many technology experts who are unemployed. Some saw an opportunity to become a third-party suppliers of tech support, especially after they became aware that even handling a small problem for a major company can cost $20. One of the new services is called GeekHelp. When the service was introduced to the market, the entrepreneur who started the company announced it has the cheapest per-minute rate of any of the tech support companies. Another one called Ask Dr. Tech charges a fee of $299 per year to provide tech support for a small business. Because some consumers cannot explain what is wrong with their computers beyond the fact it will not work, GeekXpress will make house calls to organization members who pay a fee of $35 per month. When it added house calls to its services, it did not raise its prices.
-What type of pricing strategy did GeekHelp use when it introduced its tech support service?
A) cost-plus
B) marketing-skimming
C) market-absorption
D) marginal-cost
E) market-penetration

Accepted Answer

GeekHelp used a market-penetration pricing strategy by introducing its service at the cheapest per-minute rate to quickly attract customers and gain market share.

Question 8

Due to a number of layoffs in the technology industry, there are many technology experts who are unemployed. Some saw an opportunity to become a third-party suppliers of tech support, especially after they became aware that even handling a small problem for a major company can cost $20. One of the new services is called GeekHelp. When the service was introduced to the market, the entrepreneur who started the company announced it has the cheapest per-minute rate of any of the tech support companies. Another one called Ask Dr. Tech charges a fee of $299 per year to provide tech support for a small business. Because some consumers cannot explain what is wrong with their computers beyond the fact it will not work, GeekXpress will make house calls to organization members who pay a fee of $35 per month. When it added house calls to its services, it did not raise its prices.
-Ask Dr. Tech also works with ultimate consumers. An annual fee of $89 is charged if there is only one computer in the house. An annual fee of $279 is charged if the house has four operational computers. Ask Dr. Tech offers _____ when it deals with the consumer market.
A) functional discounts
B) quantity discounts
C) seasonal discounts
D) promotional allowances
E) trade discounts

Accepted Answer

Ask Dr. Tech offers quantity discounts in the consumer market, as the annual fee varies based on the number of computers, indicating a discount for higher quantities (more computers).

Question 9

Due to a number of layoffs in the technology industry, there are many technology experts who are unemployed. Some saw an opportunity to become a third-party suppliers of tech support, especially after they became aware that even handling a small problem for a major company can cost $20. One of the new services is called GeekHelp. When the service was introduced to the market, the entrepreneur who started the company announced it has the cheapest per-minute rate of any of the tech support companies. Another one called Ask Dr. Tech charges a fee of $299 per year to provide tech support for a small business. Because some consumers cannot explain what is wrong with their computers beyond the fact it will not work, GeekXpress will make house calls to organization members who pay a fee of $35 per month. When it added house calls to its services, it did not raise its prices.
-The period between Christmas and the end of January tends to be extremely busy for tech support services. One of the tech support providers is thinking of offering customers _____ to customers who require his services during the slow summer months.
A) functional discounts
B) quantity discounts
C) seasonal discounts
D) promotional allowances
E) trade discounts

Accepted Answer

Seasonal discounts are offered to encourage customers to buy during off-peak times, which aligns with the strategy of attracting more business during the slow summer months.

Question 10

Due to a number of layoffs in the technology industry, there are many technology experts who are unemployed. Some saw an opportunity to become a third-party suppliers of tech support, especially after they became aware that even handling a small problem for a major company can cost $20. One of the new services is called GeekHelp. When the service was introduced to the market, the entrepreneur who started the company announced it has the cheapest per-minute rate of any of the tech support companies. Another one called Ask Dr. Tech charges a fee of $299 per year to provide tech support for a small business. Because some consumers cannot explain what is wrong with their computers beyond the fact it will not work, GeekXpress will make house calls to organization members who pay a fee of $35 per month. When it added house calls to its services, it did not raise its prices.
-Ask Dr. Tech uses a(n) _____ strategy when charging businesses for its services.
A) price optimization
B) flat-rate pricing
C) variable-price
D) penetration pricing
E) leader pricing

Accepted Answer

Ask Dr. Tech uses a flat-rate pricing strategy by charging a fixed annual fee of $299 for providing tech support to small businesses, regardless of how often the service is used.

Quiz 13: Pricing Strategies

Stores like Dollar Bills, where everything is priced at one dollar, and Just $8, where all clothing is priced at $8, are examples of retailers that use the _____ strategy.

Orvis, the catalog retailer, sells men's dress slacks for $49, $59, and $69. This method, which is used to simplify buying decisions, is called _ _.

___ _ ___ occurs when manufacturers seek to control the prices at which middlemen resell their products.

When McDonald's advertises a $.99 Big Mac, Burger King often retaliates with a Whopper at the same price. Before long, Wendy's, Hardee's, and other hamburger franchises are also slashing prices. Such activity is called a _ _.