The manufacturers of a tablet computer are planning to increase the price of the product above the price used during product launch to cover costs associated with product development and increased shipping costs related to overseas production. They are concerned that consumers will respond negatively to a price increase. What type of initial pricing strategy did the company most likely utilize?
penetration pricing
price skimming
captive pricing
product-line pricing
Answer: penetration pricing
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Marketing Chapter 19
- ACME Corp. offers a price discount to encourage prompt payment. Which of the following is it likely to use?
- Which of the following charges the same price to all customers regardless of geographic location, and the price is based on average shipping costs for all customers?
- Which of the following pass on to a business customer the cost savings gained through economies of scale?
- The Federal Trade Commission is investigating ACME Corp. for using misleading price tags at its outlet stores to deceive customers into believing they are getting a bargain on Wile E. branded items. Which of the following does the FTC believe ACME is guilty of?
- Maria is concerned about both price and quality of a product. Marketers would best describe her as which of the following?
- A price developed in the buyer's mind through experience with the product is a(n) _____.
- Which of the following is the point at which the costs of producing a product equals the revenue made from selling the product?
- Which of the following is calculated by dividing the variable costs by the number of units produced?
- A business's rental of production space is an example of a _____.
- Spacely Inc.'s sprockets have inelastic demand. If Spacely raises the price of sprockets, what will be the result?
- ACME Corp.'s widgets have elastic demand. If ACME raises the price of widgets, what will be the result?
- Which of the following shows the quantity of products a firm expects to sell at various prices if other factors remain constant?
- Which of the following is a major advantage of nonprice competition?
- ACME Corp. and Spacely Inc. are engaged in intense price competition in order to boost market share of their widgets. This is best described as _____.
- To compete effectively on a price basis, a firm should ____.
- Which of the following is NOT one of the factors that influence the assessment of value?
- Price is a key element in the marketing mix because it relates directly to the generation of total _____.
- Which of the following statements about the international use of the Internet is true?
- Cartoon Network encountered problems introducing the cable channel to Scandinavian television because of opposition to the violent nature of some cartoons like those with the Road Runner and Tom and Jerry. Turner could have used _____ to counter negative publicity and communicate the company's commitment to non-violence.
- _____ is the promotional function that deals with problems involving local governments, media, trade associations and the general public.
- In 2006, the Harvard faculty pressured President Lawrence Summers into resigning. Some alumni were upset by this incident. Harvard will most likely use _____ to soothe alumni feelings.
- Which of the following statements about the use of sales promotion tools in international markets is true?
- In many countries, sales promotion faces problems with distribution and retailers' resistance to processing coupons, setting up displays and dealing with premiums. These are sales promotion difficulties associated with:
- Which of the following statements about international sales promotions is true?
- Which of the following statements about the use of advertising and sales promotion in international markets is true?