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An airline runs a 6-month promotional program where all baggage fees are waived. It is using a cost-based pricing strategy.  

Dynamic pricing is particularly suitable for Internet-based companies like Amazon who want to be responsive to shoppers’ desires and marketplace changes.  

 Pricing a product based on consumers’ reference prices is referred to as ________ pricing.  

There is no true substitute for coffee. If the price goes from $8 to $12 for a package of k-cups due to a coffee bean shortage, demand will remain relatively unchanged. This is an example of demand elasticity.

Appliances Galore is continually updating its line of refrigerators to reflect market trends and customer needs. Although the product class is in the maturity stage of the product life cycle, they maintain healthy sales of their line of refrigerators by continually ________.

Price discrimination is allowed if a seller can prove that its costs are different when selling to different retailers.

Producers of popular beverages often partner with global music channels to target consumers through a variety of promotional events and advertisements. This approach to marketing is referred to as ________ segmentation.

A segment is more attractive if it is easy for new competitors to enter the market.

The marketing manager at Frizzles’ Eateries targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzles’ approach is best referred to as ________ segmentation.

One reason demographic variables are the most popular bases for segmenting customer groups is because they ________.