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Question 12 pts

1. By increasing prices without making any change to their service, Netflix is asking their customers to give up more in exchange for the same service in return.

True

False

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Question 22 pts

2. For customers who decided to cancel their Netflix subscription after the price increase, the perceived value had risen beyond the cost for the service.

True

False

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Question 32 pts

3. Netflix has the largest market share in the digital entertainment streaming industry.

True

False

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Question 42 pts

4. Competition from other streaming services has no impact on how Netflix determines pricing for their service.

True

False

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Question 52 pts

5. All streaming services agreeing to increase their price to $20/month would be an example of price fixing.

True

False

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Question 62 pts

6. The nature of the demand of Netflix is __________.

a. status quo

b. elastic

c. inelastic

d. dynamic

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Question 72 pts

7. To determine the best price for a product, what must be done?

a. Establish pricing goals.

b. Estimate demand, costs, and profits.

c. Choose a price strategy to determine the base price.

d. Fine-tune the base price with pricing tactics.

e. All of these

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Question 82 pts

8. The shipping costs passed on to the customer for sending and receiving Netflix discs are determined by __________ and are included in the subscription fee.

a. FOB origin pricing

b. zone pricing

c. uniform delivered pricing

d. basing-point pricing

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Question 92 pts

9. When Netflix proposed shifting their disc rental services to a separate business but keeping the price the same for customers who chose to keep both services, Netflix was offering price ____________________.

a. bundling

b. leading

c. fixing

d. baiting

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Question 102 pts

10. Netflixs overall pricing approach is to:

a. follow a single-price tactic.

b. use a flexible pricing strategy with their telemarketing subscription sales force.

c. use leader pricing until all other competition has gone out of business.

d. use price lining for their various service options.