Consumers buy water and soda from vending machines. Traditionally, the price of each of these products is about $1.25. If a marketer charges a significantly higher price for such products dispensed by vending machines, such as $2.00 per item, sales are likely to decline. Thus marketers tend to be very consistent in the prices they charge for vending machine products. This is an example of marketers employing a ________ strategy.
A. skimming pricing
B. customary pricing
C. loss-leader pricing
D. penetration pricing
E. below-market pricing
Answer: B
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Which of the following replaced the General Agreement on Tariffs and Trade?
A) the World Trade Organization B) the European Union C) the North American Free Trade Agreement D) the World Intellectual Property Organization
Which of the following is one of the four consumer perception dimensions used by ad agency Young & Rubicam to measure brand strength?
A) brand conformance B) brand consistency C) brand convenience D) brand extension E) brand relevance
The major purpose of the sales presentation is to provide information.
Answer the following statement true (T) or false (F)
The major avenues for achieving a cost advantage over rivals include
A. being a first-mover in adopting the latest state-of-the-art technologies, especially those relating to low-cost manufacture. B. having a management team that is highly skilled in cutting costs. C. performing value chain activities more cost-effectively than rivals or revamping the firm's overall value chain to eliminate or bypass some cost-producing activities. D. outsourcing high-cost activities to cost-efficient vendors. E. paying lower wages and salaries than rivals.