A quantity discount is a price reduction to buyers who purchase ________.
A) frequently
B) large volumes
C) close outs
D) inferior merchandise
E) superior merchandise
Answer: B
MKT Chapter 11
- Market-skimming pricing would likely be most effective in selling ________.
- Among the following, a market-penetration strategy will likely be most effective with ________.
- A manufacturer offers 3/10, net 30 terms to a wholesaler for a recent purchase. The wholesaler may deduct ________ percent if the bill is paid within ________ days.
- Lancaster Recycling has a history of problems with customers who do not pay their bills on time. Lancaster Recycling wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. The company might consider which of the following forms of pricing?
- Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most at risk of being accused of ________.
- If Northwest Awnings charges the same price for delivery of its product to any customer that is located within the Great Lakes states, but a different price to customers outside of the Great Lakes states, the company is using ________.
- Big Mike's Health Food Store sells nutritional energy-producing foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of ________.
- In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut?
- A number of top fashion-modeling agencies would most likely be charged with ________ for jointly determining what commissions they would charge for models.
- The Chicago Bears organization charges different prices for seats in different areas of Soldier Field, even though the costs are the same. This form of pricing is called ________.
- Manor Cinemas has announced that seniors over 60 years of age can enter the theater for free prior to 4:00 p.m. when accompanied by a paying customer. This is an example of ________.
- The JC Whitney Company of Chicago offers replacement parts for older Volkswagen Beetles. Parts are often shipped from other locations throughout the United States. However, the company charges for shipping as if every part was shipped from its Chicago headquarters. The company practices ________.
- Brown Baby Tanning Salon offers weekly tanning sessions for $15 and season passes with unlimited tanning for $150. Brown Baby Tanning Salon is offering ________ pricing.
- Secret Sneaker will give anyone $10 for an old pair of sneakers, regardless of condition, when that person purchases a new pair of sneakers. The end result is essentially reducing the price of the new sneakers by $10. What is this type of price adjustment called?
- Bose prices its most expensive noise reduction earphones at $399.95, which is a full $100.00 more than its next most expensive earphones. It costs Bose only a few dollars more to make the most expensive earphones. Bose is using ________ pricing.
- When product managers at Schwinn make decisions about which types of bicycle seats, handlebars, and saddlebags to offer customers on their bikes, they are engaged in ________.
- A car maker's strategy of advertising a basic vehicle model with few conveniences and comforts at a low price to entice buyers and then convincing customers to buy higher-priced models with more amenities is an example of which of the following?
- When Whallans Gift Card Shop offers a price reduction to customers who buy Christmas cards the week after Christmas, Whallans is giving a(n) ________ discount.
- When Circuit Town Electronics sets its televisions at three price levels of $699, $899, and $1,099, it is using ________.
- When Polaroid set the general price range of its cameras low and the markup on its film high, it was practicing ________.
- When Pepsi came out with Pepsi Blue and priced it at half price to attract buyers, Pepsi was using ________.
- Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share. As a consultant, you should recommend a ________ pricing strategy.
- Failure to enter the current price into a retailer's system may result in charges of ________.
- Comparison pricing claims are legal if they are truthful. However, sellers should not advertise a price reduction unless ________.
- Valeo Fashions has just introduced a new line of fashion dresses for teens. It will initially enter the market at high prices in a ________ pricing strategy.