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Chapter 11 Pricing Strategies
Chapter 11 Pricing Strategies
1) Companies facing the challenge of setting prices for the first time can choose between two
1) Companies facing the challenge of setting prices for the first time can choose between two
broad strategies: market-penetration pricing and ________.
broad strategies: market-penetration pricing and ________.
A) market-level pricing
A) market-level pricing
B) market-competitive pricing
B) market-competitive pricing
C) market-skimming pricing
C) market-skimming pricing
D) market-price lining
D) market-price lining
E) market-price filling
E) market-price filling
Answer: C
Answer: C
Diff: 2 Page Ref: 312
Diff: 2 Page Ref: 312
Skill: Concept
Skill: Concept
Objective: 11-1
Objective: 11-1
2) Of the following, which statement would NOT support a market-skimming policy for a new
2) Of the following, which statement would NOT support a market-skimming policy for a new
product?
product?
A) The products quality and image support its higher price.
A) The products quality and image support its higher price.
B) Enough buyers want the products at that price.
B) Enough buyers want the products at that price.
C) Competitors are not able to undercut the high price.
C) Competitors are not able to undercut the high price.
D) Competitors can enter the market easily.
D) Competitors can enter the market easily.
E) C and D
E) C and D
Answer: D
Answer: D
Diff: 3 Page Ref: 312
Diff: 3 Page Ref: 312
Skill: Concept
Skill: Concept
Objective: 11-1
Objective: 11-1
3) A firm is using ________ when it charges a high, premium price for a new product with the
3) 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.
intention of reducin
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