Film Chapter 15 Notes

ch15

Student: ___________________________________________________________________________

1.

Because market and operating conditions are all very similar, marketers' pricing strategies should be

uniform.

True False

2.

Cost-based pricing assumes costs will not vary much for different levels of production.

True False

3.

Value-based pricing necessitates a great deal of consumer research to be implemented successfully.

True False

4.

Odd prices suggest low quality.

True False

5.

When Sony released its PlayStation 3 game machines, it charged a high price, attracting the most avid

game players. This was a market penetration pricing strategy.

True False

6.

Cheryl wants to quickly establish a dominant market share for her new line of ergonomic pens. To do

this, she will likely use a market penetration pricing strategy.

True False

7.

Slotting allowances are used to get retailers to feature a manufacturer's product in their advertising and

promotional efforts.

True False

8.

3/10, n/30 means a 3 percent discount if paid in full within 10 days, or the net amount is due in 30

days.

True False

9.

Price lining is setting a price floor and a price ceiling for a line of products and then setting price points in

between to represent differences in quality.

True False

10. Kristina sells sports equipment and wants to get customers into her store. She knows from past experience

that sales generate customer traffic, particularly when she puts children's baseball equipment on sale. She

may consider a leader pricing strategy.

True False

11. Coupons may confuse customers and therefore do little to increase store loyalty.

True False

12. Manufacturers like rebates because it provides them with information they can use in developing new

products.

True False

13. Proving that a company has engaged in the deceptive bait and switch practice is easy.

True False

14. The Robinson-Patman Act does NOT apply to end...