Question 1

Setting a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors is referred to as __________.

Accepted Answer

A)  cost-plus pricing
B)  customary pricing
C)  standard markup pricing
D)  loss leader pricing
E)  target profit pricingF) A) and E)
G) B) and E)

Question 2

Price elasticity of demand is determined by a number of factors,such as the necessity of the product or service,the cash outlay of purchase relative to a person's disposable income,and

Accepted Answer

A)  the stage of the product or service in its product life cycle.
B)  the degree of carrying costs for the manufacturer or distributor.
C)  the availability of substitutes.
D)  the financial resources of the organization itself.
E)  the ability of the organization to meet sudden increases in demand.F) D) and E)
G) None of the above

Question 3

What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?

Accepted Answer

The six broad objectives that ...

Question 4

When Sherman bought gas,he noticed the convenience store offered him a 2 percent reduction in price if he paid cash rather than if he used his credit card to pay for his purchase.The convenience store was offering him a

Accepted Answer

A)  trade discount.
B)  cash discount.
C)  promotional allowance.
D)  rebate.
E)  functional discount.F) A) and E)
G) B) and E)

Question 5

Washburn sells their guitars through a number of channels such as chains and online dealers,but they feel it is their independent dealers who sell the guitar for them.In recognition of their hard work,Washburn takes a smaller profit margin from them because they have to do more work.In essence,this special adjustment to the list price or quoted price is an example of a(n)

Accepted Answer

A)  quantity discount.
B)  seasonal discount.
C)  trade discount.
D)  cash discount.
E)  promotional allowance.F) C) and D)
G) A) and B)

Question 6

Odd-even pricing is considered to be a __________ approach to pricing.

Accepted Answer

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

Question 7

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as __________,is common in many firms because the targets can be set and performance measured quickly.

Accepted Answer

A)  managing for long-run profits
B)  target return
C)  break-even strategy
D)  maximizing current profit
E)  minimizing riskF) A) and D)
G) B) and D)

Question 8

Prestige pricing 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 D)
G) A) and C)

Question 9

Explain the deceptive pricing practice known as bait and switch.

Accepted Answer

One common deceptive pricing practice is...

Question 10

When estimating demand,price is not the only factor to be considered.Three other elements emphasized by economists are consumer tastes,price and availability of similar products,and

Accepted Answer

A)  consumer income.
B)  consumer psychographics.
C)  size of the target market.
D)  current political agendas.
E)  green substitutes.F) B) and E)
G) B) and D)

Question 11

The ratio of perceived benefits to price is referred to as

Accepted Answer

A)  the price-quality relationship.
B)  customer value pricing.
C)  value-added pricing.
D)  value analysis.
E)  value.F) A) and D)
G) A) and C)

Question 12

Creative Quilts Studio sells hundreds of colors and types of fabric and thread.To price its inventory,the owners add 50 percent to the cost of each bolt of fabric and every spool of thread.What is this pricing approach called?

Accepted Answer

A)  target return-on-sales pricing
B)  flexible pricing
C)  cost-plus pricing
D)  standard markup pricing
E)  customary pricingF) A) and B)
G) A) and C)

Question 13

-Consider the photo above.Family Dollar Stores,like 99¢ Only Stores,use what type of pricing policy?

Accepted Answer

A)  target pricing
B)  customary pricing
C)  flexible pricing
D)  one-price policy
E)  below-market pricingF) All of the above
G) B) and C)

Question 14

Setting one price for all buyers of a product or service is referred to as __________.

Accepted Answer

A)  customary pricing
B)  one-price policy
C)  flexible-price policy
D)  standard markup pricing
E)  uniform pricingF) A) and B)
G) A) and C)

Question 15

List four key factors used to estimate demand.

Accepted Answer

Of course,price is one factor.Economists...

Question 16

Price refers to

Accepted Answer

A)  the value assigned to the exchange of products and services for other products and services.
B)  the value judgment made by both the buyer and seller regarding an item's worth.
C)  the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.
D)  the value assessed for the benefits of using a product or service.
E)  the highest monetary value a customer is willing to pay for a product or service.F) B) and C)
G) A) and E)

Question 17

Adding a fixed percentage to the cost of all items in a specific product class is referred to as

Accepted Answer

A)  target profit pricing.
B)  standard markup pricing.
C)  target return-on-investment pricing.
D)  customary pricing.
E)  everyday low pricing.F) All of the above
G) B) and C)

Question 18

Manufacturers use seasonal discounts to

Accepted Answer

A)  get rid of dated merchandise.
B)  prevent retailers from purchasing competitors' products.
C)  prolong the peak seasonal selling season.
D)  establish an immediate feeling of goodwill between the buyer and seller that hopefully will continue when prices return to normal.
E)  entice dealers to purchase seasonal merchandise earlier in the selling season.F) B) and D)
G) A) and D)

Question 19

Two types of adjustments to list or quoted price are

Accepted Answer

A)  profit-oriented and marginal adjustments.
B)  one price and flexible price adjustments.
C)  discounts and marginal adjustments.
D)  discounts and allowances.
E)  incremental costs and incremental revenues.F) B) and C)
G) C) and D)

Question 20

The practice of charging different prices to different buyers for goods of like grade and quality is referred to as

Accepted Answer

A)  horizontal price-fixing.
B)  resale price maintenance.
C)  price discrimination.
D)  predatory pricing.
E)  bait and switch pricing.F) None of the above
G) A) and D)

Exam 11: Pricing Products and Services

List four key factors used to estimate demand.

Correct Answer
verified
Of course,price is one factor.Economists...
View Answer

Two types of adjustments to list or quoted price are

Correct Answer
verified

Price elasticity of demand is determined by a number of factors,such as the necessity of the product or service,the cash outlay of purchase relative to a person's disposable income,and

Correct Answer
verified

When Sherman bought gas,he noticed the convenience store offered him a 2 percent reduction in price if he paid cash rather than if he used his credit card to pay for his purchase.The convenience store was offering him a

Correct Answer
verified

The ratio of perceived benefits to price is referred to as

Correct Answer
verified

Explain the deceptive pricing practice known as bait and switch.

Correct Answer
verified
One common deceptive pricing practice is...
View Answer

Setting one price for all buyers of a product or service is referred to as __________.

Correct Answer
verified

Price refers to

Correct Answer
verified

The practice of charging different prices to different buyers for goods of like grade and quality is referred to as

Correct Answer
verified

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as __________,is common in many firms because the targets can be set and performance measured quickly.

Correct Answer
verified

What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?

Correct Answer
verified
The six broad objectives that ...
View Answer

Correct Answer
verified

Prestige pricing is considered to be a __________ approach to pricing.

Correct Answer
verified

Manufacturers use seasonal discounts to

Correct Answer
verified

Creative Quilts Studio sells hundreds of colors and types of fabric and thread.To price its inventory,the owners add 50 percent to the cost of each bolt of fabric and every spool of thread.What is this pricing approach called?

Correct Answer
verified

Adding a fixed percentage to the cost of all items in a specific product class is referred to as

Correct Answer
verified

When estimating demand,price is not the only factor to be considered.Three other elements emphasized by economists are consumer tastes,price and availability of similar products,and

Correct Answer
verified

Odd-even pricing is considered to be a __________ approach to pricing.

Correct Answer
verified

-Consider the photo above.Family Dollar Stores,like 99¢ Only Stores,use what type of pricing policy?

Correct Answer
verified

Setting a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors is referred to as __________.

Correct Answer
verified

Exam 11: Pricing Products and Services

List four key factors used to estimate demand.

Correct AnswerverifiedOf course,price is one factor.Economists...View AnswerShow Answer

Two types of adjustments to list or quoted price are

Correct AnswerverifiedShow Answer

Price elasticity of demand is determined by a number of factors,such as the necessity of the product or service,the cash outlay of purchase relative to a person's disposable income,and

Correct AnswerverifiedShow Answer

When Sherman bought gas,he noticed the convenience store offered him a 2 percent reduction in price if he paid cash rather than if he used his credit card to pay for his purchase.The convenience store was offering him a

Correct AnswerverifiedShow Answer

The ratio of perceived benefits to price is referred to as

Correct AnswerverifiedShow Answer

Explain the deceptive pricing practice known as bait and switch.

Correct AnswerverifiedOne common deceptive pricing practice is...View AnswerShow Answer

Setting one price for all buyers of a product or service is referred to as __________.

Correct AnswerverifiedShow Answer

Price refers to

Correct AnswerverifiedShow Answer

The practice of charging different prices to different buyers for goods of like grade and quality is referred to as

Correct AnswerverifiedShow Answer

Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as __________,is common in many firms because the targets can be set and performance measured quickly.

Correct AnswerverifiedShow Answer

What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?

Correct AnswerverifiedThe six broad objectives that ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Prestige pricing is considered to be a __________ approach to pricing.

Correct AnswerverifiedShow Answer

Manufacturers use seasonal discounts to

Correct AnswerverifiedShow Answer

Creative Quilts Studio sells hundreds of colors and types of fabric and thread.To price its inventory,the owners add 50 percent to the cost of each bolt of fabric and every spool of thread.What is this pricing approach called?

Correct AnswerverifiedShow Answer

Adding a fixed percentage to the cost of all items in a specific product class is referred to as

Correct AnswerverifiedShow Answer

When estimating demand,price is not the only factor to be considered.Three other elements emphasized by economists are consumer tastes,price and availability of similar products,and

Correct AnswerverifiedShow Answer

Odd-even pricing is considered to be a __________ approach to pricing.

Correct AnswerverifiedShow Answer

-Consider the photo above.Family Dollar Stores,like 99¢ Only Stores,use what type of pricing policy?

Correct AnswerverifiedShow Answer

Setting a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors is referred to as __________.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Of course,price is one factor.Economists...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
One common deceptive pricing practice is...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The six broad objectives that ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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