Price competition is minimized when all firms in an industry use which pricing method?
A) variable pricing
B) markup pricing
C) elasticity pricing
D) value-added pricing
E) value-based pricing
Answer: B
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Marketing Chapter 10
- A product line is a group of products that are closely related because the:
- In general, most consumers don't spend a lot of time thinking about their funeral. So some funeral homes try to get them to think about their loved ones by advertising preplanned funerals. This is an attempt to get people to think about a product that most consumers do not actively seek. In other words, preplanned funerals are a(n) _____ product.
- Freda was proud of her shiny new iPhone. But she was disappointed when she began to notice scratches on its display surface. If Freda had known about the clear protective films that were available to protect the iPhone display from scratches, she could have avoided this annoying problem. For Freda, the protective films are a(n) _____ product.
- Alice is a very busy person, and she hates to spend her time doing yard work. She really likes the idea of a synthetic lawn. However, she has never pursued the idea, as she has two dogs in her backyard. Alice doesn't know that several manufactures make synthetic grass with an antibacterial agent to minimize odors for pet owners. For Alice, the dog-friendly synthetic lawns are a(n) _____ product because she doesn't know the product exists.
- Unsought products typically are products that:
- _____ products are products that are not known about or not actively searched for by consumers. These products require aggressive personal selling and highly persuasive advertising.
- When deciding on distribution plans for specialty products, companies generally ensure that the items are:
- Evan Zimmermann loves watches. He collects vintage Rolex sport models made between 1950 and 1960. He paid $1,500 for his first watch in 2000. Now the watch is worth $15,000. For Evan, the vintage watches are an example of a(n) _____ product.
- Janet will only purchase Williams-Sonoma products for her kitchen. The products are expensive, but Janet feels they have the highest quality and will last a very long time. These products represent _____ products.
- Bang & Olufsen make some of the best sound systems in the world. After years of development, Bang & Olufsen recently released its new BeoLab 5 speakers. For audiophiles who demand the best in audio equipment, the $19,950 Bang & Olufsen BeoLab 5 speakers represent an example of a(n) _____ product.
- _____ products are searched for extensively, and substitutes are not acceptable. These products may be quite expensive, and often distribution is limited.
- Which of the following products is most likely to be considered an example of a heterogeneous shopping product?
- When Kyla wanted patio furniture, she visited stores that had outdoor furniture, including Home Depot, Lowe's, Target, and Howard Lumber Company to find the set that would look just right on her patio. If Kyla represents a typical patio furniture shopper, you know this product is a(n):
- _____ products are seen by consumers to differ in quality, style, suitability, and lifestyle compatibility. Comparisons between these products are often quite difficult because they may have unique features and different levels of quality and price.
- Andrea needs to find a kennel for boarding her son's dogs. There are several different kennels in her community, and Andrea believes all of them to be basically alike. The only feature she is genuinely concerned about is low price. For Andrea, the kennel for boarding dogs would be classified as a(n) _____ product.
- _____ are products consumers see as being basically the same, so consumers shop for the lowest price.
- Which of the following is the best example of a shopping product for most consumers?
- The two types of shopping products are:
- Harrison wanted a gas water heater. He watched newspaper ads until he found one on sale. For Harrison, the water heater is a(n) _____ product.
- Which type of consumer product requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores?
- Kathy is driving Chaz, her young son, home from soccer practice when Chaz says, "Mom, I'm thirsty." Kathy immediately pulls the car into the nearest gas station and buys Chaz a Coke. For Kathy, the Coke is best described as an example of buying a _____ product.
- Compared to the other classifications of consumer products, shopping products are:
- Amy stopped by the grocery store to pick up a gallon of milk. As she was waiting to check out, she noticed that Soap Opera Digest had an interesting story about one of her favorite characters. As Amy is a huge fan of the long-running soap, she had to buy a copy. In this example, the Soap Opera Digest is an example of a(n) _____ product.
- The convenience product marketing strategy includes:
- _____ products are purchased with little shopping effort. These products typically are purchased regularly, usually with little planning, and require wide distribution.