____________ is setting the price lower than competing brands in order to enter a market and quickly gain a significant share of the market.
A) Price skimming
B) Premium pricing
C) Penetration pricing
D) Bait pricing
E) Captive pricing
Question 2Which of the following bases for pricing is most commonly used by retailers?
A) Negotiated pricing
B) Markup pricing
C) Demand-based pricing
D) Cost-plus pricing
E) Differential pricing
Question 3Information about competitors' prices
A) cannot be uncovered during marketing research.
B) is not a consideration in the price-setting process.
C) is essential in an industry dominated by nonprice competition.
D) is often a closely guarded secret.
E) is readily available to all industry participants.
Question 4Which of the following is true about the evaluation of competitors' prices?
A) This is done in stage three of the price-setting process.
B) This is done in stage four of the price-setting process.
C) This is done in stage five of the price-setting process.
D) This is done in stage six of the price-setting process.
E) This is done in stage two of the price-setting process.
Question 5Which of the following is true about the target market's evaluation of price?
A) The importance of price depends on the unemployment rate.
B) The importance of price depends on the type of product.
C) The importance of price does not depend on the target market.
D) The target market's perception of value combines a product's price and size attributes.
E) The target market's perception of value combines a product's price and availability attributes.
Question 6You are the marketing manager for a multistate auto dealership in the southeast United States. It is that time of year when your fleet of autos goes through a major model year change. You are putting the final touches on your pricing strategy to facilitate this change in your inventory of autos.
Which of the following pricing strategies will you use to facilitate this model year change?
A) Negotiated pricing
B) Secondary-market pricing
C) Differential pricing
D) Random discounting
E) Periodic discounting
Question 7You are the head of pricing strategy for your firm, and you are very excited about a new point-of-sale system that has just been installed in all your firm's retail outlets. The system is a state-of-the-art, real-time information system that captures the details of every sale made in your retail outlets. Now you will have up-to-the-minute data on sales volume trends and performances for your entire product line. You plan to use this data to set prices based on these volume trends.
Which of the following bases for pricing are you intending to use?
A) Markup pricing
B) Competition-based pricing
C) Demand-based pricing
D) Cost-based pricing
E) Cost-plus pricing
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