Principles Of Marketing 13e Kotler | Questions and Answers
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Principles Of Marketing 13e Kotler | Questions and Answers
A company sets not a single price, but rather a ________ that covers different items in its line that change over time as products move through their life cycles. ** Answ** pricing structure
Companies facing the challenge of set...
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Principles Of Marketing 13e Kotler | Questions and
Answers
A company sets not a single price, but rather a ________ that covers different items in its line
that change over time as products move through their life cycles. ** Answ** pricing
structure
Companies facing the challenge of setting prices for the first time can choose between two broad
strategies: market-penetration pricing and ________. ** Answ** market-skimming pricing
Of the following, which statement would NOT support a market-skimming policy for a new
product?
A) The product's quality and image support its higher price.
B) Enough buyers want the products at that price.
C) Competitors are not able to undercut the high price.
D) Competitors can enter the market easily.
E) C and D ** Answ** D) Competitors can enter the market easily.
A firm is using ________ when it charges a high, premium price for a new product with the
intention of reducing the price in the future. ** Answ** price skimming
________ pricing is the approach of setting a low initial price in order to attract a large number
of buyers quickly and win a large market share. ** Answ** Market-penetration
Accent Software faces the conditions below, all of which support Accent's use of a market-
penetration pricing strategy EXCEPT that ________.
A) the market is highly price sensitive
B) production and distribution costs will fall as sales volume increases
,C) the product's quality and image support a high price D) a low price would help keep out the
competition
E) A and C ** Answ** C. the product's quality and image support a high price
Which of the following is a reason that a marketer would choose a penetration pricing strategy?
** Answ** to discourage competition from entering the market
Companies usually develop ________ rather than single products. ** Answ** product lines
A marketer must be familiar with the five major product mix pricing situations. Which of the
following is NOT one of them?
A) product line pricing
B) optional-product pricing
C) captive-product pricing
D) unbundled product pricing
E) by-product pricing ** Answ** D) unbundled product pricing
A challenge for management in product line pricing is to decide on the price steps between the
________. ** Answ** various products in a line
When using price steps, the seller must establish perceived ________ that support the price
differences. ** Answ** quality differences
Many producers who use captive-product pricing set the price of the main product ________ and
set ________ on the supplies necessary to use the product. ** Answ** low; high markups
When amusement parks and movie theaters charge admission plus fees for food and other
attractions, they are following a(n) ________ pricing strategy. ** Answ** captive-product
, HiPoint Telephone Company uses two-part pricing for its long-distance call charges. Because
this is a service, the price is broken into a fixed rate plus a ________. ** Answ** variable
usage rate
Companies involved in deciding which items to include in the base price and which to offer as
options are engaged in ________ pricing. ** Answ** optional-product
Keeping in mind that a seller must sell by-products at a price that covers more than the cost of
storing and delivering them, which of the following will by-product pricing permit a seller to do?
A) increase the main product's price
B) make extra profit
C) reduce the main product's price
D) none of the above
E) B and C ** Answ** B) make extra profit
C) reduce the main product's price
With product bundle pricing, sellers can combine several products and offer the bundle
________. ** Answ** at a reduced price
What is a major advantage of product bundle pricing? ** Answ** It can promote the sales of
products consumers might not otherwise buy.
Which of the following is NOT a price adjustment strategy?
A) segmented pricing
B) promotional pricing
C) free samples
D) geographical pricing
E) seasonal pricing ** Answ** C) free samples
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