Question 1

The fact that senior citizens are charged a lower price at movie theaters than are younger adults is an example of ____ pricing.

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Question 2

Discounts given to customers who buy in large amounts are called ____ discounts.

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Question 3

If a manager designs the shoe department in a manner that one of its private label pairs of shoes, priced at $69.99, is positioned next to a well-known national brand of shoes priced at $89.99, what strategy is the manager attempting to accomplish?

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Question 4

The maker of Oral-B toothbrushes is introducing a new electric plaque remover and expects considerable competition. What pricing strategy would be appropriate for this maker to choose?

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Question 5

If the manager at Best Buy puts a sign up next to a Pioneer stereo that reads, "Only $199.99! $58.01 less than Circuit City," this is an example of what type of pricing strategy?

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Question 6

Ties 'R' Us sells a variety of ties at many different prices. Often customers are confused about the pricing and have a hard time making a buying decision. Ties 'R' Us should use what type of pricing strategy?

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Question 7

The strategy of setting a single price for two or more units is known as

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Question 8

If Tiger Mart advertises a 2-liter bottle of Pepsi for $1.29 cents to generate store traffic that will increase the purchasing of other items at regular prices, the grocer is using

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Question 9

The strategy of setting a low price for a new product to gain a large market share for the product quickly is called

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Question 10

Price leaders

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...

Question 11

The strategy of setting prices at uneven amounts that are slightly below an even or whole number of dollars is called

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Question 12

When Polaroid comes out with a new model in a series, it sets an initial price and then gradually lowers the price. Polaroid is initially using which pricing strategy?

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Question 13

Lisa goes to a car dealership to purchase a new Honda Accord. She is not willing to pay the listed sticker price for the car, and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon. This is an example of ____ pricing.

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Question 14

A discount from the list, or retail, price offered to intermediaries is a(n) ____ discount.

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Question 15

A pricing strategy in which a manufacturer pays for the shipping cost of its merchandise to the wholesaler is called ____ pricing.

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Question 16

Discounts from the list price offered to intermediaries are called ____ discounts.

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Question 17

The temporary reduction of prices on a patterned or systemic basis is called

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Question 18

A manager at JCPenney discovers that Burlington Coat Factory has reduced the price of its children's Levi's from $31.99 to $24.99, according to an advertisement in the Sunday newspaper. She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: $24.99." This is an example of what pricing strategy?

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Question 19

A deduction from the price of an item is called a

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Question 20

Discounts offered to encourage early payment of outstanding accounts are called ____ discounts.

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Quiz 13: A: Creating and Pricing Products That Satisfy Customers