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Dynamic pricing
Promotional pricing
Price
Cost-based
Variable
Market-penetration
7. Setting the price steps between various products in a line based on cost differences
between the products, customer evaluations of different features, and competitors’ prices is
___________________.
8. ____________ means pricing products that must be used with the main product.
9. Different products are sold together at a reduced price is called ___________.
10. ______________ refers to products with little or no value produced as a result of the main
product.
11. Adjusting prices to allow for differences in customers, products, or locations is called
___________.

True or False
__________12 Value-based pricing means that the marketer cannot design a product and
marketing program and then set the price.
__________13. Everyday low pricing (EDLP) involves charging a constant, everyday low price
and running frequent promotions to lower prices temporarily on selected items.
__________14. When using market penetration pricing strategy, the product’s quality and
image must support its higher price, and enough buyers must want the product at
that price.
__________15. Promotional pricing, when used too frequently and copies by competitors can
create “deal-prone”.
__________16. Free on Board (FOB) means the seller absorbs all or part of the actual freight
charge as an incentive to attract business in competitive markets.
__________17. Price cuts occur due to an increased demand.
__________18. Price increase occurs due to increased market share.
__________19. Geographic pricing is used for customers in different parts of the country or
the world.
__________20. Segmented pricing, to be effective, segments must show different degrees of
demand.