Question 1

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

Accepted Answer

A)  everyday low pricing.
B)  everyday fair pricing.
C)  trade-in allowances.
D)  markdown pricing.
E)  everyday value pricing.F) A) and D)
G) A) and C)

Question 2

Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark is referred to as

Accepted Answer

A)  customary pricing.
B)  above-,at-,or below-market pricing.
C)  standard markup pricing.
D)  competitive margin pricing.
E)  experience curve pricing.F) A) and B)
G) B) and E)

Question 3

Consumers buy water and soda from vending machines.Traditionally,the price of each of these products is about $1.25.If a marketer charges a significantly higher price for such products dispensed by vending machines,sales are likely to decline.In order to avoid declines in sales,marketers tend to be very consistent in the prices they charge for vending machine products.This is an example of marketers employing a __________ strategy.

Accepted Answer

A)  below-market pricing
B)  skimming pricing
C)  penetration pricing
D)  loss-leader pricing
E)  customary pricingF) C) and D)
G) B) and C)

Question 4

What are discounts? List the four kinds that are especially important in marketing pricing strategy.

Accepted Answer

Discounts are reductions from list price...

Question 5

When Kroger,a national supermarket chain,uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level) ,it is attempting to

Accepted Answer

A)  drive its competition out of business.
B)  attract customers in hopes they will buy other products as well.
C)  fill its parking lot so its store will look successful.
D)  work with the local bottler to move products that are close to their expiration dates.
E)  help stimulate the local economy and generate good will with its customers.F) A) and D)
G) A) and C)

Question 6

Yield management is considered to be a __________ approach to pricing.

Accepted Answer

A)  demand-oriented
B)  cost-oriented
C)  profit-oriented
D)  competition-oriented
E)  service-orientedF) A) and E)
G) C) and D)

Question 7

Skimming pricing refers to

Accepted Answer

A)  setting the lowest initial price possible when introducing a new or innovative product in order to "skim" sales from competitors.
B)  setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product.
C)  setting a low initial price on a new product to appeal immediately to the mass market.
D)  the practice of replacing promotional allowances with higher manufacturer list prices.
E)  setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.F) A) and B)
G) None of the above

Question 8

Your local instant photocopying service charges 10 cents a copy up to 25 copies,9 cents a copy for 26 to 99 copies,and 8 cents a copy for 100 copies or more.What kind of adjustment to these list or quoted prices is the photocopying service using?

Accepted Answer

A)  experience curve pricing
B)  loss-leader pricing
C)  a quantity discount
D)  a promotional discount
E)  everyday low pricingF) A) and B)
G) None of the above

Question 9

What is the difference between a movement along a demand curve and a shift of a demand curve?

Accepted Answer

A movement along a demand curve assumes ...

Question 10

Which of the following statements regarding pricing constraints is most accurate?

Accepted Answer

A)  When a product is in the introductory stage of the product life cycle,there is very little latitude in setting the initial price since consumers still don't know what the product can really do.
B)  A company has more latitude in setting an initial price if the product is in the introductory stage of its life cycle and there is limited competition.
C)  The greater the number of products in a company's product line,the less the product features of similar products can affect price.
D)  The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands.
E)  To avoid cannibalization,the newest product addition to a company's product line should never have a price lower than the other offerings in the line.F) A) and B)
G) A) and E)

Question 11

North America's fastest-growing HDTV and consumer electronics company is

Accepted Answer

A)  Samsung.
B)  Philips.
C)  LG.
D)  Sony.
E)  Vizio.F) None of the above
G) B) and E)

Question 12

Four cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,and __________.

Accepted Answer

A)  dividend cost
B)  liquidity cost
C)  discretionary cost
D)  unit variable cost
E)  elastic costF) C) and D)
G) D) and E)

Question 13

Which of the following statements regarding cost-oriented approaches is most accurate?

Accepted Answer

A)  These methods focus on the demand side of the pricing problem.
B)  These methods focus on production and marketing expenses.
C)  Target return on investment is an example of a cost-oriented method.
D)  Experience curve pricing is simple to use because costs predictably decrease by 25 percent with each doubling of production.
E)  Cost-oriented approaches are a subcategory of competition-oriented methods.F) B) and C)
G) A) and D)

Question 14

Price discrimination is illegal under the

Accepted Answer

A)  Sherman Act.
B)  Consumer Goods Pricing Act.
C)  Robinson-Patman Act.
D)  Federal Trade Commission Act.
E)  Anti-Competitive Act.F) B) and E)
G) C) and D)

Question 15

Setting an annual target of a specific dollar volume of profit is referred to as __________.

Accepted Answer

A)  target profit pricing
B)  target return-on-investment pricing
C)  loss leader pricing
D)  at-,above-,or below-market pricing
E)  yield management pricingF) A) and E)
G) A) and B)

Question 16

Which of the following is a typical example of a variable cost?

Accepted Answer

A)  shipping costs
B)  rent on a building
C)  executive salaries
D)  insurance premiums
E)  lease on delivery trucksF) A) and B)
G) C) and E)

Question 17

A demand curve graph typically appears as

Accepted Answer

A)  a parabola with the apex representing the highest price that can be charged without losing customers.
B)  a diagonal line going from upper left to lower right demonstrating that as price goes down,demand goes up.
C)  an inverted parabola with the lowest point representing the lowest price that can be charged and still meet the company's profit objectives.
D)  a diagonal line going from lower left to upper right demonstrating that as prices go up,demand goes up proportionately.
E)  two intersecting lines that identify the point at which supply and demand are exactly the same.F) B) and C)
G) A) and D)

Question 18

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

Accepted Answer

A)  cost-plus pricing
B)  skimming pricing
C)  prestige pricing
D)  loss-leader pricing
E)  bundle pricingF) A) and B)
G) A) and C)

Question 19

Companies use a "price premium" to assess whether their products and brands are priced above,at,or below the market.More specifically,a price premium is the percentage by which the actual price charged for a specific brand exceeds or falls short of a benchmark established for a similar product or basket of products.This price premium equals:

Accepted Answer

A)  unit volume market share for a brand divided by dollar sales market share for a brand,minus 1.
B)  dollar sales market share for a brand divided by unit volume market share for a brand,plus 1.
C)  dollar sales market share for a brand divided by unit volume market share for a brand,minus 1.
D)  dollar sales market share for a brand,divided by unit volume market share for a brand,plus 1.
E)  dollar sales market share for a brand,divided by unit volume market share for a brand,minus the number of competitors against which a brand is being measured.F) None of the above
G) A) and D)

Question 20

According to the price equation,final price equals list price minus __________ plus extra fees.

Accepted Answer

A)  profits
B)  commissions
C)  trade-ins
D)  taxes
E)  incentives and allowancesF) D) and E)
G) A) and E)

Exam 11: Pricing Products and Services

Setting an annual target of a specific dollar volume of profit is referred to as __________.

Correct Answer
verified

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

Correct Answer
verified

Which of the following statements regarding pricing constraints is most accurate?

Correct Answer
verified

What is the difference between a movement along a demand curve and a shift of a demand curve?

Correct Answer
verified
A movement along a demand curve assumes ...
View Answer

Your local instant photocopying service charges 10 cents a copy up to 25 copies,9 cents a copy for 26 to 99 copies,and 8 cents a copy for 100 copies or more.What kind of adjustment to these list or quoted prices is the photocopying service using?

Correct Answer
verified

Yield management is considered to be a __________ approach to pricing.

Correct Answer
verified

Which of the following is a typical example of a variable cost?

Correct Answer
verified

Correct Answer
verified

Four cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,and __________.

Correct Answer
verified

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

Correct Answer
verified

What are discounts? List the four kinds that are especially important in marketing pricing strategy.

Correct Answer
verified
Discounts are reductions from list price...
View Answer

Price discrimination is illegal under the

Correct Answer
verified

When Kroger,a national supermarket chain,uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level) ,it is attempting to

Correct Answer
verified

Correct Answer
verified

Which of the following statements regarding cost-oriented approaches is most accurate?

Correct Answer
verified

According to the price equation,final price equals list price minus __________ plus extra fees.

Correct Answer
verified

Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark is referred to as

Correct Answer
verified

Skimming pricing refers to

Correct Answer
verified

North America's fastest-growing HDTV and consumer electronics company is

Correct Answer
verified

A demand curve graph typically appears as

Correct Answer
verified

Exam 11: Pricing Products and Services

Setting an annual target of a specific dollar volume of profit is referred to as __________.

Correct AnswerverifiedShow Answer

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

Correct AnswerverifiedShow Answer

Which of the following statements regarding pricing constraints is most accurate?

Correct AnswerverifiedShow Answer

What is the difference between a movement along a demand curve and a shift of a demand curve?

Correct AnswerverifiedA movement along a demand curve assumes ...View AnswerShow Answer

Your local instant photocopying service charges 10 cents a copy up to 25 copies,9 cents a copy for 26 to 99 copies,and 8 cents a copy for 100 copies or more.What kind of adjustment to these list or quoted prices is the photocopying service using?

Correct AnswerverifiedShow Answer

Yield management is considered to be a __________ approach to pricing.

Correct AnswerverifiedShow Answer

Which of the following is a typical example of a variable cost?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Four cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,and __________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are discounts? List the four kinds that are especially important in marketing pricing strategy.

Correct AnswerverifiedDiscounts are reductions from list price...View AnswerShow Answer

Price discrimination is illegal under the

Correct AnswerverifiedShow Answer

When Kroger,a national supermarket chain,uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level) ,it is attempting to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements regarding cost-oriented approaches is most accurate?

Correct AnswerverifiedShow Answer

According to the price equation,final price equals list price minus __________ plus extra fees.

Correct AnswerverifiedShow Answer

Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark is referred to as

Correct AnswerverifiedShow Answer

Skimming pricing refers to

Correct AnswerverifiedShow Answer

North America's fastest-growing HDTV and consumer electronics company is

Correct AnswerverifiedShow Answer

A demand curve graph typically appears as

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A movement along a demand curve assumes ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Discounts are reductions from list price...
View 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
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