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________ is also known as ________. correct answers Cryptocurrency; digital currency The first step when planning pricing policies for a good or service is to develop _____. correct answers pricing objectives Once a marketer decides on the pricing objectives of a product, the next step is to ...

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________ is also known as ________. correct answers Cryptocurrency; digital currency

The first step when planning pricing policies for a good or service is to develop _____. correct
answers pricing objectives

Once a marketer decides on the pricing objectives of a product, the next step is to ________.
correct answers estimate demand

Why is it important for organizations to accurately estimate the demand for a good or service?
correct answers To plan production, marketing, and budgets

Which of the following pricing strategies includes expenses tied to a product and a
predetermined amount of profit? correct answers Cost-plus

Which pricing strategy is practiced by retailers who offer durable, good quality products at
reasonable prices on an everyday basis? correct answers EDLP

Which pricing strategy is especially popular in digital offerings such as software media and
games? correct answers Freemium pricing

Which of the following best describes the practice of Internet price discrimination? correct
answers Offering different prices to different customers for the same product

The idea that two products are similar in quality and value because the prices are similar is
known as _____. correct answers the assimilation effect

Which of the following is an illegal marketing practice? correct answers Bait-and-switch

__________ pricing is a pricing strategy in which the price of a product is raised as demand for
that product goes up and lowered as demand goes down. correct answers Surge

When pricing strategies are determined by ___________ objectives, the focus is on a target level
of profit growth or a desired net profit margin. correct answers profit

What is cost-plus pricing? correct answers A method of setting prices in which the seller totals
all the costs for the product and then adds an amount to arrive at the selling price

What is dynamic pricing? correct answers A pricing strategy in which the price can easily be
adjusted to meet changes in the marketplace

What is the point at which a firm doesn't lose any money but doesn't make any profit? correct
answers Break-even point

, Which of the following describes the illegal practice known as bait-and-switch? correct answers
An advertised price special is used to get customers into the store with the intention of switching
them to a higher-priced item

What is penetration pricing? correct answers The pricing strategy in which a firm introduces a
new product at a very low price to encourage more customers to purchase.

The amount added to the cost of a product to create the price at which a channel member will sell
the product is known as __________. correct answers markup

What are average fixed costs? correct answers The fixed costs per unit produced

What is the term used when a company provides a product in its most basic version free of
charge but charges money for upgraded versions of the product? correct answers Freemium
strategy

Why do marketers want to see and understand demand curves? correct answers They are
primarily used to show the number of units the market will buy in a given time period, at
different prices that might be charged.

What is loss-leader pricing? correct answers The pricing policy of setting prices very low or even
below cost to attract customers into a store

Which of the following is a set price or price range in consumers' minds to which they refer in
evaluating a product's price? correct answers Internal reference price

Which of the following describes elastic demand for a product? correct answers When customers
are sensitive to changes in prices, and a change in price results in a substantial change in demand

What kind of discounts are discounts off list price of products to members of the channel of
distribution who perform various marketing functions? correct answers Trade discounts

Which step in the price planning process involves looking at the economy, the competition,
government regulation, consumer trends, and the international environment? correct answers
Examine the pricing environment

The pricing tactic in which a firm adds a standard shipping charge to the price for all customers
regardless of location is __________ pricing. correct answers uniform-delivered

What is the last step in the price planning process? correct answers Develop pricing tactics

Setting pricing objectives is the __________ step in the price planning process. correct answers
first

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