QUESTION 1

A business using price lining is doing which of the following?

		attempting to achieve a large market share before any competitors can enter the marketplace
		selling items in a product line at different prices
		trying to recover its research and development costs for a new product
		trying to avoid the use of psychological pricing, which may be negatively received by customers
		engaging in potentially unethical pricing

QUESTION 2

A company that intends to maintain low-end pricing policies to make the market unattractive for its competitors is using which of the following pricing objectives in its price planning?

		competitive effect
		sales
		customer satisfaction
		break-even
		profit

QUESTION 3

A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.

		prestige pricing
		penetration pricing
		value pricing
		trial pricing
		a skimming price

QUESTION 4

A firm is using a(n) ________ strategy when it introduces a product at a very low price to gain market share early on.

		penetration pricing
		trial pricing
		high/low
		skimming price
		intensive pricing

QUESTION 5

A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaurant nearby sells entrees for $20, $30, and $45. Both of these restaurants are using ________.

		psychological pricing
		demand-based pricing
		prestige pricing
		cost-based pricing
		penetration pricing