1. With _____, the seller pays the actual freight charges and bills every purchase with an identical, flat freight charge.

2. Business-to-business salespeople often use _____ to heighten the demand for certain items in a product line. It is a discounting practice that is often done routinely without much forethought.

3. All of the following are tactics for fine-tuning the base price EXCEPT:

4. AMC Theaters offers customers a package that includes two movie tickets, two small drinks and one small popcorn all priced together at $29.99. this pricing technique is called.

5. Post makes several varieties of cereals. In promoting this product line, Post offers a 50-cents-off coupon that can be used to purchase any of its cereals. Therefore, Post must consider _____ when pricing its cereals.

6. Trade-ins often go hand-in-hand with:

7. All of the following are geographic pricing methods EXCEPT:

8. When a channel intermediary is compensated for the ordinary services and tasks performed within the channel of distribution, the compensation usually comes in the form of a discount from base price. This discount is called

9. An Internet picture frame manufacturer offers retailers reduced prices on any combination of size or style frames purchased. The discount is shown as they shop and adjusted as the quantity of frames purchased increases. What common form of purchase discount is the frame manufacturer using?

10. Often a seller will establish a series of prices for a family of merchandise items. There may be several different models at specific price points but no prices in between. This policy is called.

11. Claxton Bakery recently began selling its fruitcakes online. If Claxton wants a simple pricing system that allows for different shipping charges depending on geographic segment or region, the company should use _____ pricing.

12. For which of the following situations would a price-skimming strategy be most appropriate?

13. Every week, Keller’s Grocery runs a weekly ad in the newspaper touting its sale prices on a number of products. For example, this week the store is selling cherries for $1.50/pound and boneless chicken breasts for 99 cents/pound. Keller’s sells these products at a below-market price to lure customers into the store in hopes that while they are in the store to buy chicken and cherries, they will also buy other grocery items that have a much higher markup. The store is using:

14. Pharmacies are a new addition to Sam's Clubs. They could exert a greater influence on the marketplace for prescription drugs than their newness indicates. Sam's has a stated philosophy of marking up merchandise a maximum of 14 percent. When that philosophy is applied to prescription drugs, especially generics, warehouse club prices can be dramatically lower than those of conventional drugstores, supermarkets, or discount store pharmacies. Sam's is using a _____ strategy to convince consumers to use its pharmacies rather than its competitors.

15. If the seller pays all or part of the actual freight charges and does not pass them on to the buyer, the seller is using _____ pricing.

16. Which of the following prohibits any firm from selling to two or more different buyers, within a reasonably short time, commodities (not services) of like grade and quality at different prices where the result would be to substantially lessen competition?

17. A situation in which a manufacturer, and its distributors agree that the retailers will sell the manufacturer’s products at a certain price, at or above the price floor, is called.

18. When a buyer pays a lower price for buying multiple units or above a specified dollar amount for a single order, the buyer is receiving a _____ discount.

19. If items are _____, an increase in the sale of one good causes an increase in the sale of the other (and vice versa).

20. An Alabama-based catalog retailer sells fireplace equipment such as screens and andirons. Its customers in New England are charged one shipping rate, and customers west of the Rocky Mountains are charged a different rate. Customers in the midwestern states are charged yet another rate. What kind of geographic pricing is the catalog retailer using?

21. _____ tries to get customers into the store with misleading advertising and then uses high-pressure selling to persuade the consumer to buy something else more expensive.

22. One form of extreme penetration pricing that has dramatically increased sales during the recent economic downturn is _____ grocers.

23. When the Mosquito Magnet was introduced, it was designed to rid the immediate area of mosquitoes and other annoying insects. The technology for the Mosquito Magnet had taken years to develop. It is a patented grill-like apparatus that emits carbon dioxide to attract bugs to a fan that draws them into the device where they die. What type of pricing policy would you recommend the company use to introduce this product to the market?

24. States developed unfair trade practice acts to

25. A national manufacturer of car parts has six warehouses and has a pricing policy of charging freight from the closest warehouse to the customer, regardless of where parts are shipped from. For instance, if the customer is in Vancouver, British Columbia, the closest warehouse to the customer is in Seattle, Washington. If the ordered car part actually comes from the Alabama warehouse, the customer still pays freight from Seattle. The manufacturer uses _____ pricing.