Title: Pricing Strategies
Course: Demo 1

Q: Pricing strategies that are most appropriate for introducing new products to the market include:
- high/low pricing and psychological pricing
- cost-plus pricing and pricing below competitors
- penetration pricing and skimming
A: penetration pricing and skimming

Q: When it comes to pricing strategy, firms should:
- pick a pricing strategy that works and stick with it
- change pricing strategy regularly to keep the competition at bay
- monitor and adapt pricing strategy to new scenarios as they arise
A: monitor and adapt pricing strategy to new scenarios as they arise

Q: Every week, the grocery store chain Green Jeans advertises weekly specials and coupons, hoping to attract customers with great sale prices. This is an example of:
- psychological pricing
- everyday low pricing
- high/low pricing
A: high/low pricing

Q: "Higher price equates to higher quality," is an example of a ________ pricing strategy in action.
- skimming
- high/low
- psychological
A: psychological

Q: Penetration pricing works on the assumption that:
- early adopters are willing to pay more for a premium product
- sale prices will attract customers to the store, where they will also buy things at regular higher prices
- price-sensitive customers will switch to a new product because it’s cheaper
A: price-sensitive customers will switch to a new product because it’s cheaper

Q: High-low pricing works on the assumption that:
- early adopters are willing to pay more for a premium product
- price-sensitive customers will switch to a new product because it’s cheaper
- sale prices will attract customers to the store, where they will also buy products at regular higher prices
A: sale prices will attract customers to the store, where they will also buy products at regular higher prices

Q: Skimming works on the assumption that:
- price-sensitive customers will switch to a new product because it’s cheaper
- sale prices will attract customers to the store, where they will also buy things at regular higher prices
- early adopters are willing to pay more for a premium product
A: early adopters are willing to pay more for a premium product

Q: When Apple introduced the first iPhone, it was priced substantially higher than other mobile phones at the time. But because it was also the latest technology, Apple was confident it would sell well. This is an example of:
- penetration pricing
- odd pricing
- skimming
A: skimming

Q: Samsung entered the smartphone market after Apple’s success with the iPhone. Samsung priced its phones substantially lower than the iPhone, hoping to win customers who wanted to pay less for a latest-generation smartphone. This is an example of:
- skimming
- high/low pricing
- penetration pricing
A: penetration pricing

Q: Kayla manages a boutique selling well-designed but moderately-priced women’s clothing and accessories. Sales have been slow lately, so the boutique owner asks Kayla what pricing strategies she would recommend to bring more customers into the shop and increase sales. To achieve these goals most effectively in the immediate future, which approach(es) should Kayla recommend?
- psychological pricing
- skimming
- high/low pricing
A: high/low pricing

Q: Although penetration pricing can be effective at generating sales and establishing a new product in the market more quickly, what are the trade-off(s) of this approach?
- accepting lower prices and profit margins
- focusing on sales volume, rather than profitability
- pricing products higher than the competition
A: accepting lower prices and profit margins; focusing on sales volume, rather than profitability