Self-test Question 1

Which pricing strategy would be most

appropriate for a marketer of luxury
designer brands:
a) gray market
b) skimming
c) penetration
d) market holding
e) cost based

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Self-test Question 2

If company managers decide to set the

export price for a particular product at an
amount equivalent to the home country
price, they would be using which
approach to pricing:
a) ethnocentric
b) polycentric
c) regiocentric
d) geocentric

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Self-test Question 3

The unauthorized distribution of trademarked

goods to exploit price differentials in world
markets is known as:
a) market skimming
b) black marketing
c) gray marketing
d) dumping
e) licensing

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Self-test Question 4
In the late 1990s, the U.S. Justice Department
fined two European pharmaceutical companies
hundreds of millions of dollars for conspiring to
suppress competition and set high prices for
vitamin supplements marketed in the United
States. What was the issue in this lawsuit:
a) price skimming
b) market penetration
c) price bundling
d) price fixing
e) transfer pricing

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Self-test Question 5
Excelsior Corp. launches a new hand-held personal
digital assistant (PDA) for busy corporate executives.
The initial retail price is set at $699. One year later, in
an effort to reach a broader market, the price is
lowered to $299. Which of the following describes the
pricing strategies used by Excelsior Corp:
a) skimming strategy followed by penetration
strategy
b) penetration strategy followed by cost based
strategy
c) penetration strategy followed by skimming
strategy
d) penetration strategy only
e) skimming strategy only

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