Pricing Strategies

A movie theater sells its tickets at lower prices to students and seniors. This is an example of:

• Prompt payment

• Price discrimination

• Price skimming

• Stability pricing

Fast food restaurants such as McDonalds use this pricing strategy for selling combos of burgers, fries and a beverage at a lower price than the total price of the items sold individually. This is an example of:

• Discounts

• Stability pricing

• Price discrimination

• Product-bundle pricing

A clothing store puts all its products at 50% discount, due to the change of season. This is an example of:

• Survival pricing

• Price discrimination

• Block pricing

• Promotion

The price skimming consists of setting high prices and reducing them over time to maximize the long-term profit.

• True

• False

Which of the following is not an objective of pricing strategy?

• Increase Sales

• Maximize Profit

• Discourage Competition

• Discourage Customers

Which pricing strategy involves setting prices based on the costs for producing, distributing and selling the product plus a fair rate of return for its effort and risk?

• Customer Value-Based Pricing

• Competition-Based Pricing

• Cost-Based Pricing

• Dynamic Pricing

Term for a item that is intentionally priced below cost to draw people into the store

• Loser Item

• Sale

• Discount Item

• Loss Leader

Which of the following Pricing Strategies describes when you take the cost of producing a good and add on a percentage of profit to arrive at the selling price?

• Cost-plus pricing

• Low pricing

• Promotional Pricing

• High pricing

What are 3 things pricing may be based on?

• Product, promotion, and service

• Cost, Demand, and Competition

• Cost, Demand, and Customers

• Price, Promotion, Professionalism

In business, a company in the same industry or a similar industry which offers a similar product or service is called?

• Coordinators

• Business Partners

• Management

• Competitor