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Answers to supplementary objective test questions

8.3

The GX watch will be priced significantly above the average market price for
similar watches because the GX brand is highly regarded. This is an example
of premium pricing.

The B5 phone will be priced high initially as the research and development
costs involved in making it need to be recovered. This is an example of market
skimming.

The 4S alarm clock will be priced very low when it is introduced as the company
is keen to build market share. This is an example of market penetration.

The FP GPS system will be sold to retailers for over $30 less per unit than the
price charged to consumers. This is an example of price differentiation.

The XB smart reader will be sold at a below cost price to encourage sales and
so stimulate demand for the XB smart reader plug ins which can be bought
separately. This is an example of loss leader pricing.

The QY radio is sold at a lower price than most of the competitors although it is
marketed as being of similar quality. This is an example of discount pricing.

The price of the XG heart implant is regulated by the national medical board.
This is an example of controlled pricing.

The CG movement monitor can be bought with the FG heart rate monitor and
the KG personal GPS for a single price. This is an example of product
bundling.

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