Companies use dynamic pricing to balance out supply and demand. (True or false?)

Companies use dynamic pricing to balance out supply and demand.
 
 Indicate whether the statement is true or false

Question 2

Hotels try to price rooms to maximize resources by quickly adapting to changes in demand. Part of this involves anticipating consumer behavior and calculating a number of different factors, including demand for rooms at a particular time period, likely length of stay, types of rooms likely to be requested, etc. It wants to be able to sell rooms at the right price to the right people. This pricing strategy is an example of
 A) yield management.
  B) penetration pricing.
  C) price skimming.
  D) differential pricing.
  E) special-event pricing.

Question 3

Uber uses a pricing strategy based on real-time market conditions. It charges less in periods of low demand and more during periods of high demand. Sometimes these prices double or triple during periods of high demand. Uber argues that these higher prices motivate more drivers to pick up passengers, thus increasing the supply of drivers needed to handle the additional demand. This demand-based pricing strategy is an example of
 A) special-event pricing.
  B) penetration pricing.
  C) dynamic pricing.
  D) prestige pricing.
  E) reference pricing.

Question 4

Brian is shopping for a new coat at Stein Mart and finds a North Face down jacket that he really likes. He knows that the North Face brand is considered to be high quality and that it's usually very expensive. He's pleasantly surprised to see the price-the suggested retail price is 199 and Stein Mart's price is 99. Brian decides to purchase the coat even though it's a little more expensive than he originally thought he'd spend on the jacket. What type of pricing strategy is Stein Mart using to price the North Face jacket and other merchandise?
 A) Comparison discounting
  B) Price leaders
  C) Special-event pricing
  D) Odd-even pricing

Question 5

Max and Tiffany are celebrating their 10th wedding anniversary and are dining at an exclusive French restaurant in a major city a few hours away from their home. They're reviewing the wine list and want to celebrate their anniversary with a bottle of champagne. Max and Tiffany are not very knowledgeable about the different brands of champagne but know that in order to be classified as champagne, the grapes must be grown in a particular region of France known as the champagne viticulture region. Other producers might have similar products, but they must use the phrase sparkling wine as they are prohibited from using the champagne name. As Max and Tiffany are reviewing the wine list, they see that a bottle of Cristal, which is a famous label, sells for 250 per bottle but a sparkling wine from the Anjou region of France is 50 per bottle. Since Max and Tiffany are not that knowledgeable about wine, they decide to order the 50 bottle of sparkling wine. What type of pricing strategy does Cristal most likely utilize?
 A) Prestige
  B) Customary
  C) Odd-even
  D) Reference

Question 6

Tiffany and John recently purchased a 25-year-old home and are currently immersed in a kitchen remodel, which includes replacing countertops, cabinets, and kitchen appliances. They are shopping for appliances and visited several retailers to compare prices and determine which brands best met their requirements. One retailer is offering the GE brand refrigerator, cook top, built-in oven, dishwasher, and warming drawer for 3,999, while another retailer has a set of LG appliances that includes a larger refrigerator, range/oven combination, dishwasher, and wine cooler for 3,450. Tiffany and John are meeting with their kitchen designer to finalize their plans for the kitchen and think that either one of these packages will fit their requirements. The appliance retailers are utilizing a ______ pricing strategy.
 A) bundle
  B) reference
  C) skimming
  D) premium

Question 7

Theatergoers in the Midwest were pleasantly surprised when they arrived at the cinema to see the latest release and learned that a price reduction had just gone into effect. The Wehrenberg Theater chain, which is the oldest theater company and operates in 15 Midwest locations, decided to drop matinee prices from 7.75 to 4.50 per person and reduce evening prices from 9.75 to 7.50 per person. The price decrease is a result of decreased traffic at the theater and a trend for consumers to use Netflix or Hulu to watch movies. The Starplex Cinemas operating in the same communities as Wehrenberg followed suit and reduced their prices to attract consumers as well. The two movie theater chains are utilizing the ______ pricing basis.
 A) competition-based
  B) markup
  C) demand-based
  D) cost-plus

Question 8

All for Fun is a retail store that offers a variety of board games, magic cards, and other collectible items and caters to teens and adults who enjoy strategy-based games. The store has over 20,000 magic cards and utilizes a sophisticated computer system to identify the value of each card. All for Fun determines the rarity of a given card and adjusts prices according to how much money customers are likely to pay for a particular card. Cards that are in limited production or considered rare are more expensive than cards that are widely available. Thus, the price for a single magic card might vary between 25 and 50 or more per card depending on the market. What type of pricing is All for Fun utilizing?
 A) Demand-based pricing
  B) Markup pricing
  C) Cost-plus pricing
  D) Competition-based pricing