Chapter 7 Marketing Quiz

True or False. In the early stage of a product life cycle is when the lowest price is charged and most profits are reaped.
False
A product sold at a low price (i.e. at cost or below cost) to attract customers and stimulate sales of other profitable products is called:

Cost plus pricing
Loss Leader Pricing
Premium Pricing
Penetration Pricing
Limit Pricing

Loss Leader Pricing
Pricing a product at $3.99 instead of $4.00 is an example of:
Predatory pricing
Psychological pricing
Premium pricing
Dynamic pricing
Penetration pricing
Psychological pricing
The economics technique that is used to help determine the “optimal” product price is called:
Line pricing
Price flexibility modeling
Power pricing
Price elasticity
Price modeling
Price elasticity
The best business to own and operate is one in which buyers will pay just about any price for your goods, and sales volume doesn’t really change much no matter what you charge. This is called:
Price modeling
Price sensitive
Power pricing
Price insensitive
High-Low pricing
Price insensitive
True or False: Price communicates value to the consumer. The price you ask makes a statement about the value you are offering to the consumer.
True
The pricing strategy often used at department stores like Kohl’s or Dillard’s, where goods offered by the retailer are regularly priced higher than the competition, but through promotions, sales, advertisements or discounts, lower prices are offered on key items.
High-Low Pricing
Value-based pricing
Bait and Switch pricing
Premium-decoy pricing
Absorption pricing
High-Low Pricing
A pricing strategy where retailers combine several products into the same package is called:
Optional product pricing
Every-day low price
Freemium pricing
Value pricing
Product bundle pricing
Product bundle pricing
The pricing strategy made famous by Wal-Mart, where the retailer sets the price at the lowest price they are willing to sell the product at.
Value pricing
Product bundle pricing
Every-day low price
High-Low pricing
Product line pricing
Every-day low price
True or False. Most consumers who live at or near the poverty line almost exclusively purchase generic products for use in their homes.
False