If Kroger food stores advertise 2-liter bottles of Pepsi for 89 cents to generate store traffic so that shoppers will purchase other items at regular prices, the grocer is using
A) reference pricing.
B) a price leader.
C) special-event pricing.
D) comparison discounting.
E) professional pricing.
Question 2Price leaders, comparison discounting, and special-event pricing are applications of
A) psychological pricing.
B) professional pricing.
C) product-line pricing.
D) bait-and-switch.
E) promotional pricing.
Question 3What type of pricing strategy is used in a situation where the seller has an ethical responsibility not to overcharge the client and the fees do not relate directly to the time and/or effort spent in specific cases?
A) Price lining
B) Prestige pricing
C) Professional pricing
D) Customary pricing
E) Price skimming
Question 4Services that are performed by lawyers, dentists, or doctors are typically priced using ____; sometimes these prices are not based on the amount of time that is spent in each situation, but are based on a flat fee regardless of the difficulty involved.
A) traditional pricing
B) professional pricing
C) everyday low prices
D) price lining
E) customary pricing
Question 5If REVO sets the price for its sunglasses at 240, it is most likely using _____pricing to convey ______.
A) product-line; prestige
B) product-line; quality
C) psychological; quality
D) psychological; prestige
E) price-skimming; quality
Question 6Odd-even pricing is
A) a cost-based strategy.
B) competition based.
C) a rarely used technique.
D) a psychological pricing strategy.
E) a form of unethical pricing.
Question 7The decision of Macy's to use even prices such as 60 for a Ralph Lauren Polo is an application of ____, where ____ prices are often used to _____.
A) odd-even pricing; even; give a product an upscale or exclusive image
B) odd-even pricing; odd; show customers products are priced based on tradition
C) prestige; premium; give a product an upscale or exclusive image
D) prestige; even; make it easier for consumers to compare
E) odd-even; even; facilitate comparison to competitors' prices
Question 8Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using ______, which usually results in a ______.
A) multiple-unit pricing; lower per unit price
B) reference pricing; lower per unit price
C) multiple-unit pricing; more convenient package
D) bundle pricing; lower per unit price
E) bundle pricing; more convenient package
Question 9When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of
A) multiple-unit pricing.
B) bundle pricing.
C) prestige pricing.
D) price lining.
E) price packaging.
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