Liberty University BUSI 520 Quiz 4. Questions &
Answers (Graded A)
Attempt Score 100 out of 100 points
Question 1
2 out of 2 points
________ pricing takes into account a host of inputs, such as the buyer's image of the product
performance, the channel deliverables, the warranty quality, customer support, and attributes
such as the supplier's reputation, trustworthiness, and esteem.
Selected Answer: Perceived-value
Question 2
2 out of 2 points
In markets that are characterized by products that are highly homogeneous, how should a firm
react to a competitor's reduction in price?
Selected Answer: augment the product
Question 3
2 out of 2 points
Competitors are most likely to react to a price change when ________.
Selected Answer: there are few competing firms
Question 4
2 out of 2 points
When higher-priced competitors match lower prices of their competitors but have longer
staying power because of deeper cash reserves, it leads to a(n) ________ trap.
, Selected Answer: shallow-pockets
Question 5
2 out of 2 points
A company does not set a final price until the product is finished or delivered. This is known
as ________.
Selected Answer: delayed quotation pricing
Question 6
2 out of 2 points
Starbucks, Aveda, and BMW have been able to position themselves within their categories by
combining quality, luxury, and premium prices with an intensely loyal customer base. These
companies are employing a ________ strategy.
Selected Answer: product-quality leadership
Question 7
2 out of 2 points
Matt's retail store offers all products at $2 less than its competitors. The store never runs
promotional campaigns or offers special discounts. Matt's retail store is following a(n)
________ pricing policy.
Selected Answer: everyday low
Question 8
2 out of 2 points
The minimum price that most consumers would pay for a given product is known as the
________ price.
Selected Answer: lower-bound
Question 9
2 out of 2 points
Answers (Graded A)
Attempt Score 100 out of 100 points
Question 1
2 out of 2 points
________ pricing takes into account a host of inputs, such as the buyer's image of the product
performance, the channel deliverables, the warranty quality, customer support, and attributes
such as the supplier's reputation, trustworthiness, and esteem.
Selected Answer: Perceived-value
Question 2
2 out of 2 points
In markets that are characterized by products that are highly homogeneous, how should a firm
react to a competitor's reduction in price?
Selected Answer: augment the product
Question 3
2 out of 2 points
Competitors are most likely to react to a price change when ________.
Selected Answer: there are few competing firms
Question 4
2 out of 2 points
When higher-priced competitors match lower prices of their competitors but have longer
staying power because of deeper cash reserves, it leads to a(n) ________ trap.
, Selected Answer: shallow-pockets
Question 5
2 out of 2 points
A company does not set a final price until the product is finished or delivered. This is known
as ________.
Selected Answer: delayed quotation pricing
Question 6
2 out of 2 points
Starbucks, Aveda, and BMW have been able to position themselves within their categories by
combining quality, luxury, and premium prices with an intensely loyal customer base. These
companies are employing a ________ strategy.
Selected Answer: product-quality leadership
Question 7
2 out of 2 points
Matt's retail store offers all products at $2 less than its competitors. The store never runs
promotional campaigns or offers special discounts. Matt's retail store is following a(n)
________ pricing policy.
Selected Answer: everyday low
Question 8
2 out of 2 points
The minimum price that most consumers would pay for a given product is known as the
________ price.
Selected Answer: lower-bound
Question 9
2 out of 2 points
