1. Most new Carmex products are priced between $0.99 and $2.99, well within reach of the price sensitive mass consumer market. Carmex is utilizing a _________ strategy with its lip balm products.
A) skimming pricing B) penetration pricing C) prestige pricing D) price lining
2. Because consumers respond more favorably to Carmex when priced at $0.99 versus $1.00, many Carmex product prices end with a 9. This demand-oriented approach is known as ________.
A) target pricing B) bundle pricing C) odd-even pricing D) price lining
3. Carmex Moisture Plus is priced between $2.49 and $2.99, a high price compared the $0.99 Carmex tube. Carmex managers estimated that female consumers would be willing to pay more for the sleek packaging, benefits, and additional ingredients found in the Moisture Plus line and set the price accordingly. Which demand-oriented approach is best reflected in the price of the Moisture Plus line?
A) Yield management pricing B) Quantity pricing C) Price setting D) Bundle pricing E) Target pricing
4. The number of silver sticks ordered for the Moisture Plus product is much lower than the number of yellow tubes ordered for the original Carmex product. With a lower purchase volume, Carmex does not receive a significant discount on the silver tubes from its suppliers. Carmex managers will use a ______ pricing approach to incorporate the price of the packaging into Moisture Plus’ final price.
A) value-oriented B) demand-oriented C) competition-oriented D) cost-oriented
5. A high-low retailer like Walgreens might temporarily cut the price of Carmex tubes to $0.49, well below its customary price to attract attention to the product and customers to the store. This temporary price reduction is an example of__________.
A) skimming pricing B) customary pricing C) standard markup pricing D) loss-leader pricing