Marketing CH16,19

When price reaches a certain level, customers may consider poor quality. This level is referred to as:

• price preference

• orienting point

• floor price

• low price threshold

Consumer psychology in pricing includes all but:

• reference prices

• price-quality inferences

• price endings

• price beginnings

A realtor priced a house at 7.12 million for expected bargaining. She is using ___ of consumer psychology in pricing.

• imaging pricing

• high price threshold

• price endings

• reference prices

Reference prices include all but:

• last paid prices

• competitor prices

• typical prices

• best prices

Pricing objectives are always about maximizing profits.

• True

• False

To maximize profits, pricing strategies should aim at low pricing.

• True

• False

For maximum market skimming, pricing always starts high.

• True

• False

A good understanding of consumers' price sensitivity is important in estimating demand.

• True

• False

Price elasticity of demand often means better customer loyalty.

• True

• False

Factors that reduce price sensitivity include all but:

• fewer substitutes

• higher switching cost

• more unique products

• more expensive items