Question 1

A reference value involves comparing the costs and benefits of __________.

Accepted Answer

A)  substitute items
B)  items of equal or greater value
C)  products with which a consumer is familiar and items the consumer has not seen or used before
D)  items from one particular distributor
E)  intangible itemsF) A) and B)
G) C) and D)

Question 2

Which of the following statements about penetration pricing is most accurate?

Accepted Answer

A)  Penetration pricing is a profit-oriented approach to pricing.
B)  Penetration pricing is a cost-oriented pricing method.
C)  Penetration pricing encourages competitors to enter a market.
D)  Penetration pricing is more effective in a marketplace with price-sensitive consumers.
E)  Penetration pricing usually precedes a skimming pricing.F) B) and D)
G) C) and E)

Question 3

When is skimming pricing an effective strategy?

Accepted Answer

Skimming pricing is an effective strateg...

Question 4

A manufacturer using __________ is setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Accepted Answer

A)  skimming pricing
B)  penetration pricing
C)  price lining
D)  odd-even pricing
E)  prestige pricingF) None of the above
G) D) and E)

Question 5

What is it called when a manufacturer offers discounts to resellers in the marketing channel on the basis of where they are in the channel?

Accepted Answer

A)  seasonal discounts
B)  trade discounts
C)  cash discounts
D)  promotional allowances
E)  trade-in allowancesF) All of the above
G) A) and C)

Question 6

Bob Biltmore owns dozens of very successful print shops throughout the Midwest.Biltmore's shops specialize in low-cost black-and-white copies and feature user-friendly machines consumers can easily operate.In recent months,Biltmore has noticed many more competitors in the areas where his stores are located.In an attempt to eliminate the competition,Biltmore has decided to charge a very low price for his black-and-white copies,a price so low his competitors will be forced out of business.After the competition has been driven out,Biltmore plans to raise the price of his copies.Biltmore is planning to engage in the illegal and unethical practice of

Accepted Answer

A)  price fixing.
B)  price inflation.
C)  deceptive pricing.
D)  competitive pricing.
E)  predatory pricing.F) C) and E)
G) All of the above

Question 7

Which of the following statements about the product life cycle as a pricing constraint is most accurate?

Accepted Answer

A)  The newer a product is,the higher the price that can usually be charged.
B)  The later in the product life cycle a product is,the higher the price that can usually be charged.
C)  Once a product is considered nostalgic,the price will continue to rise indefinitely.
D)  Fads will generally have only two price points-high and low-but the values of those price points will remain basically the same.
E)  Prices should not be changed until a product reaches the maturity stage.F) C) and D)
G) B) and C)

Question 8

Charging different prices to maximize revenue for a set amount of capacity at any given time is referred to as

Accepted Answer

A)  demand backward pricing.
B)  target pricing.
C)  skimming pricing.
D)  yield management pricing.
E)  penetration pricing.F) A) and E)
G) D) and E)

Question 9

The purpose of a cash discount is to

Accepted Answer

A)  reward retailers for making large quantity purchases.
B)  encourage purchasing items during periods of low demand.
C)  prevent competitors from obtaining shelf space.
D)  counteract the introduction of a new product by a competitor.
E)  encourage retailers to pay their bills promptly.F) A) and B)
G) A) and C)

Question 10

A buying situation can involve comparing the costs and benefits of substitute items-such as real sugar to the sugar substitute Splenda,which,although more expensive than sugar,is purchased by many consumers because it contains no calories.This situation involves the consumer considering

Accepted Answer

A)  a marginal analysis.
B)  a profit equation.
C)  a break-even analysis.
D)  price elasticity of demand.
E)  a reference value.F) C) and D)
G) B) and D)

Question 11

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

Accepted Answer

A)  first-time buyers.
B)  professional musicians.
C)  stars and famous musicians.
D)  guitar collectors and music aficionados.
E)  intermediate-skill players who may become professional musicians.F) A) and B)
G) D) and E)

Question 12

Predatory pricing is

Accepted Answer

A)  most effective in the growth stage of the product life cycle.
B)  a popular technique preferred by online businesses.
C)  illegal but often difficult to prosecute.
D)  most effective in business-to-business marketing.
E)  one of the most widely used pricing practices for professional marketers.F) B) and E)
G) B) and D)

Question 13

All of the following are demand factors EXCEPT:

Accepted Answer

A)  the price of similar products.
B)  consumer tastes.
C)  consumer income.
D)  the availability of similar products.
E)  the number of distribution outlets carrying the product.F) A) and D)
G) B) and E)

Question 14

Renfro's,Inc.,is a company that sells 25 different relishes in 45 different states.Mrs.Renfro's chipotle corn salsa is so popular that the company cannot make enough to keep its resellers stocked.Its price of $4.50 for a jar seems just right to consumers who savor its hot and spicy taste.The popularity of hot and spicy food is an example of a __________ that Mrs.Renfro's has taken advantage of to make its product a success.

Accepted Answer

A)  barter factor
B)  demand factor
C)  supply factor
D)  consumer index
E)  macroeconomic environmental factorF) B) and D)
G) B) and E)

Question 15

A flexible-price policy refers to

Accepted Answer

A)  setting the price of a line of products at a number of different specific pricing points.
B)  setting the prices for all items in a product line to cover the total cost and produce a profit for the complete line,not necessarily for each item.
C)  deliberately selling a product below its customary price,not to increase sales,but to attract customers' attention in hopes that they will buy other products as well.
D)  setting different prices for products and services depending on individual buyers and purchase situations.
E)  Adding a fixed percentage to the cost of all items in a specific product class.F) B) and E)
G) B) and C)

Question 16

To be successful,odd-even pricing depends on

Accepted Answer

A)  a retailers' ranges of prices.
B)  the wholesalers' markups.
C)  a manufacturer's costs.
D)  competitors' price assumptions.
E)  customers' perceptions of price.F) C) and E)
G) A) and B)

Question 17

Wrigley recently introduced a new flavor of Orbit brand sugar free chewing gum-mint mojito.The introductory price was low so that it quickly created loyal customers for the flavor.In this example,Wrigley used

Accepted Answer

A)  skimming pricing.
B)  penetration pricing.
C)  price lining.
D)  odd-even pricing.
E)  loss-leader pricing.F) A) and C)
G) C) and E)

Question 18

Which of the following is a demand-oriented approach to pricing?

Accepted Answer

A)  customary pricing
B)  target profit pricing
C)  standard markup pricing
D)  bundle pricing
E)  service-oriented pricingF) B) and C)
G) B) and E)

Question 19

Factors that limit the range of prices a firm may set are referred to as __________.

Accepted Answer

A)  pricing restraints
B)  pricing constraints
C)  demand factors
D)  pricing barriers
E)  pricing restrictionsF) A) and D)
G) A) and C)

Question 20

Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price is called

Accepted Answer

A)  competitive collusion.
B)  price cooperation.
C)  horizontal price fixing.
D)  lateral price fixing.
E)  vertical price fixing.F) A) and D)
G) A) and C)

Exam 11: Pricing Products and Services

Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price is called

Correct Answer
verified

Correct Answer
verified

Wrigley recently introduced a new flavor of Orbit brand sugar free chewing gum-mint mojito.The introductory price was low so that it quickly created loyal customers for the flavor.In this example,Wrigley used

Correct Answer
verified

What is it called when a manufacturer offers discounts to resellers in the marketing channel on the basis of where they are in the channel?

Correct Answer
verified

Factors that limit the range of prices a firm may set are referred to as __________.

Correct Answer
verified

A reference value involves comparing the costs and benefits of __________.

Correct Answer
verified

The purpose of a cash discount is to

Correct Answer
verified

To be successful,odd-even pricing depends on

Correct Answer
verified

A buying situation can involve comparing the costs and benefits of substitute items-such as real sugar to the sugar substitute Splenda,which,although more expensive than sugar,is purchased by many consumers because it contains no calories.This situation involves the consumer considering

Correct Answer
verified

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

Correct Answer
verified

Correct Answer
verified

Which of the following statements about penetration pricing is most accurate?

Correct Answer
verified

A flexible-price policy refers to

Correct Answer
verified

Charging different prices to maximize revenue for a set amount of capacity at any given time is referred to as

Correct Answer
verified

Which of the following is a demand-oriented approach to pricing?

Correct Answer
verified

A manufacturer using __________ is setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Correct Answer
verified

Predatory pricing is

Correct Answer
verified

When is skimming pricing an effective strategy?

Correct Answer
verified
Skimming pricing is an effective strateg...
View Answer

Which of the following statements about the product life cycle as a pricing constraint is most accurate?

Correct Answer
verified

All of the following are demand factors EXCEPT:

Correct Answer
verified

Exam 11: Pricing Products and Services

Controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price is called

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Wrigley recently introduced a new flavor of Orbit brand sugar free chewing gum-mint mojito.The introductory price was low so that it quickly created loyal customers for the flavor.In this example,Wrigley used

Correct AnswerverifiedShow Answer

What is it called when a manufacturer offers discounts to resellers in the marketing channel on the basis of where they are in the channel?

Correct AnswerverifiedShow Answer

Factors that limit the range of prices a firm may set are referred to as __________.

Correct AnswerverifiedShow Answer

A reference value involves comparing the costs and benefits of __________.

Correct AnswerverifiedShow Answer

The purpose of a cash discount is to

Correct AnswerverifiedShow Answer

To be successful,odd-even pricing depends on

Correct AnswerverifiedShow Answer

A buying situation can involve comparing the costs and benefits of substitute items-such as real sugar to the sugar substitute Splenda,which,although more expensive than sugar,is purchased by many consumers because it contains no calories.This situation involves the consumer considering

Correct AnswerverifiedShow Answer

Washburn Guitars markets its guitars to four distinct market segments.The firm's mass-produced instruments are targeted at

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements about penetration pricing is most accurate?

Correct AnswerverifiedShow Answer

A flexible-price policy refers to

Correct AnswerverifiedShow Answer

Charging different prices to maximize revenue for a set amount of capacity at any given time is referred to as

Correct AnswerverifiedShow Answer

Which of the following is a demand-oriented approach to pricing?

Correct AnswerverifiedShow Answer

A manufacturer using __________ is setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Correct AnswerverifiedShow Answer

Predatory pricing is

Correct AnswerverifiedShow Answer

When is skimming pricing an effective strategy?

Correct AnswerverifiedSkimming pricing is an effective strateg...View AnswerShow Answer

Which of the following statements about the product life cycle as a pricing constraint is most accurate?

Correct AnswerverifiedShow Answer

All of the following are demand factors EXCEPT:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Skimming pricing is an effective strateg...
View Answer

Correct Answer
verified

Correct Answer
verified