Chapter12 exercise for multiple choice and true or false

Chapter12 exercise for multiple choice and true or false -...

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Chapter 12 Pricing Strategies Multiple Choice 1. Valeo Fashions has just introduced a new line of fashion dresses for teens. They will enter the market initially at high prices in a _____ pricing strategy. a. market-penetration b. market-skimming c. competitive market d. psychological (b; Moderate) 2. The purpose of _____ pricing is to set a low initial price in order to attract a large number of buyers quickly and win a large market share. a. market-skimming b. market-penetration c. below-market d. leader (b; Easy) 3. All of the following conditions support market-penetration pricing except one. a. The market must be highly price sensitive. b. Production and distribution costs must fall as sales volume increase. c. The product’s quality and image must support the price. d. The low price must help keep out the competition. (c; Challenging) 4. A general practice when using captive-product pricing is to set the price of the main product _____ and set _____ on the associate’s supplies. a. low; low markups b. high; low markups c. low; high markups d. high; high markups (c; Moderate) 5. When Kodak sets the general price range of its cameras low and its related film high it is practicing _____. a. market-penetration pricing b. market-skimming pricing c. product line pricing d. captive-product pricing
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(d; Challenging) 6. When management at Yamaha Motorcycles makes decisions on which type of saddlebags, handle bars, and seats for its bikes, they become engaged in ______. a.
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Chapter12 exercise for multiple choice and true or false -...

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