Question 1

Using target profit pricing relies on an accurate estimate of

Accepted Answer

A)  the average price consumers are willing to pay.
B)  a price that will cover your costs.
C)  fluctuations in the current value of the dollar.
D)  demand.
E)  the competitions' willingness to match your price.F) None of the above
G) A) and D)

Question 2

Swedish company Asko,which prides itself on manufacturing and marketing some of the best-built and most expensive appliances in the world,would probably use which competition-oriented pricing approach?

Accepted Answer

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

Question 3

Odd-even pricing is based on

Accepted Answer

A)  retailers' perceptions of price.
B)  customers' perceptions of price.
C)  wholesalers' markups.
D)  manufacturers' perceptions of price.
E)  government regulators' perceptions of price.F) All of the above
G) A) and D)

Question 4

Bundle pricing is considered to be a __________ pricing practice.

Accepted Answer

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

Question 5

A conspiracy among firms to set prices for a product is referred to as

Accepted Answer

A)  price discrimination.
B)  price fixing.
C)  predatory pricing.
D)  tying arrangements.
E)  exclusive dealing.F) A) and C)
G) C) and E)

Question 6

Customary pricing refers to

Accepted Answer

A)  a pricing method where the price the seller quotes includes all transportation costs.
B)  setting the same price for similar customers who buy the same product and quantities under the same conditions.
C)  deliberately selling a product below its list price to attract attention to it.
D)  setting a price that is dictated by tradition,a standardized channel of distribution,or other competitive factors.
E)  pricing based on what the market will bear.F) A) and B)
G) B) and C)

Question 7

If you were to buy one peach tree and one apple tree from the Stark Bros.fruit trees and landscaping catalog in two separate orders,you would pay a total of $109.99.However,if you order the peach and apple tree together in the same order,you pay only $89.99.When purchasing the two trees together,what pricing strategy does Stark Bros.employ?

Accepted Answer

A)  product line pricing
B)  prestige pricing
C)  price lining
D)  discount pricing
E)  bundle pricingF) A) and B)
G) C) and D)

Question 8

Vizio,Inc.is an up-and-coming contender in the __________ market.

Accepted Answer

A)  designer eyewear
B)  virtual media
C)  HDTV
D)  3D video game
E)  exotic travelF) B) and D)
G) All of the above

Question 9

Which one of the following statements regarding bundle pricing is most accurate?

Accepted Answer

A)  Bundle pricing is intended to benefit the consumer,not the seller.
B)  Bundle pricing is really "bundle packaging" since the price charged is for two or more products that are shrink-wrapped together.
C)  Bundle pricing is often associated with a skimming strategy.
D)  Bundle pricing often provides a lower total cost to buyers and lower marketing costs to sellers.
E)  Bundle pricing is based on the idea that consumers value the individual items more than they value the group contained in the package.F) All of the above
G) C) and E)

Question 10

Occasionally,prices may rise later in the product's life cycle.This is often due to

Accepted Answer

A)  new competitors entering the market.
B)  production economies of scale.
C)  a decrease in the price of raw materials.
D)  nostalgia and fad factors.
E)  the type of competitive market shifts from pure monopoly to pure competition.F) A) and E)
G) B) and C)

Question 11

You can buy a General Electric dishwasher for $399 or you can buy a similar Bosch brand dishwasher for $989.Since Bosch uses its pricing strategy to project a high-quality product image,it is most likely using __________ pricing.

Accepted Answer

A)  bundle
B)  standard markup
C)  prestige
D)  penetration
E)  cost plus fixed-feeF) B) and C)
G) D) and E)

Question 12

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

Accepted Answer

A)  first-time buyers.
B)  professional musicians.
C)  stars and famous musicians.
D)  large institutional buyers such as band programs.
E)  intermediate-skill players who may become professional musicians.F) B) and C)
G) C) and D)

Question 13

Price deals that mislead consumers fall into the category of

Accepted Answer

A)  predatory pricing.
B)  deceptive pricing.
C)  price discrimination.
D)  caveat emptor.
E)  resale price maintenance.F) A) and C)
G) B) and D)

Question 14

With profit-oriented approaches to pricing,a price setter may choose to balance both _________ and _________ to set price.

Accepted Answer

A)  revenue; profit
B)  tangible goods; service
C)  cost; revenue
D)  demand; supply
E)  cost; demandF) A) and B)
G) B) and C)

Question 15

A demand curve refers to a graph that relates

Accepted Answer

A)  the quantity sold and price,which shows the maximum number of units that will be sold at a given price.
B)  the quantity sold and price,which shows the minimum number of units that must be sold to break even.
C)  the quantity sold and price,which shows the minimum number of units that must be sold in order to make a profit.
D)  total production costs to various price points in order to determine how many units must be sold in order to realize a predetermined profit.
E)  primary demand to selective demand.F) None of the above
G) B) and C)

Question 16

Total revenue refers to

Accepted Answer

A)  the profit made from selling a product or service.
B)  the net gain in sales revenue if the unit price is lowered.
C)  the least number of units sold needed to cover product,distribution,and promotional costs.
D)  the amount by which marginal costs exceed fixed costs.
E)  the total money received from the sale of a product.F) A) and B)
G) A) and E)

Question 17

When Apple introduced its iPad,it became the first commercially successful tablet device.Since then,what pricing constraint has become more important for Apple in its sale of this product?

Accepted Answer

A)  the cost of producing the product
B)  the cost of marketing the product
C)  the attention paid to social responsibility
D)  the prices charged by new competitors
E)  the need to increase market shareF) A) and B)
G) A) and C)

Question 18

According to the price equation,final price equals __________ minus incentives and allowances plus extra fees.

Accepted Answer

A)  salaries
B)  list price
C)  profits
D)  trade-ins
E)  taxesF) D) and E)
G) B) and C)

Question 19

UMD11: Price Premium Marketing Dashboard
-The UMD11: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2010?

Accepted Answer

A)  -12.5%
B)  -7.5%
C)  -5.3%
D)  0%
E)  15.2%F) B) and E)
G) C) and D)

Question 20

An ad campaign by Suave shampoo asked television viewers to identify the heads of hair of women who used Suave shampoo and conditioner and those that used the much more expensive salon hair-care products.The idea of the ad was that no one could tell which woman used the much cheaper Suave brand.By making price its selling point,Suave is most likely using __________.

Accepted Answer

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

Exam 11: Pricing Products and Services

Odd-even pricing is based on

Correct Answer
verified

Customary pricing refers to

Correct Answer
verified

UMD11: Price Premium Marketing Dashboard -The UMD11: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2010?

Correct Answer
verified

With profit-oriented approaches to pricing,a price setter may choose to balance both _ and _ to set price.

Correct Answer
verified

Using target profit pricing relies on an accurate estimate of

Correct Answer
verified

According to the price equation,final price equals __________ minus incentives and allowances plus extra fees.

Correct Answer
verified

Price deals that mislead consumers fall into the category of

Correct Answer
verified

When Apple introduced its iPad,it became the first commercially successful tablet device.Since then,what pricing constraint has become more important for Apple in its sale of this product?

Correct Answer
verified

A demand curve refers to a graph that relates

Correct Answer
verified

Swedish company Asko,which prides itself on manufacturing and marketing some of the best-built and most expensive appliances in the world,would probably use which competition-oriented pricing approach?

Correct Answer
verified

Bundle pricing is considered to be a __________ pricing practice.

Correct Answer
verified

Total revenue refers to

Correct Answer
verified

Correct Answer
verified

A conspiracy among firms to set prices for a product is referred to as

Correct Answer
verified

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

Correct Answer
verified

Occasionally,prices may rise later in the product's life cycle.This is often due to

Correct Answer
verified

You can buy a General Electric dishwasher for $399 or you can buy a similar Bosch brand dishwasher for $989.Since Bosch uses its pricing strategy to project a high-quality product image,it is most likely using __________ pricing.

Correct Answer
verified

Correct Answer
verified

Vizio,Inc.is an up-and-coming contender in the __________ market.

Correct Answer
verified

Which one of the following statements regarding bundle pricing is most accurate?

Correct Answer
verified

Exam 11: Pricing Products and Services

Odd-even pricing is based on

Correct AnswerverifiedShow Answer

Customary pricing refers to

Correct AnswerverifiedShow Answer

UMD11: Price Premium Marketing Dashboard -The UMD11: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2010?

Correct AnswerverifiedShow Answer

With profit-oriented approaches to pricing,a price setter may choose to balance both _________ and _________ to set price.

Correct AnswerverifiedShow Answer

Using target profit pricing relies on an accurate estimate of

Correct AnswerverifiedShow Answer

According to the price equation,final price equals __________ minus incentives and allowances plus extra fees.

Correct AnswerverifiedShow Answer

Price deals that mislead consumers fall into the category of

Correct AnswerverifiedShow Answer

When Apple introduced its iPad,it became the first commercially successful tablet device.Since then,what pricing constraint has become more important for Apple in its sale of this product?

Correct AnswerverifiedShow Answer

A demand curve refers to a graph that relates

Correct AnswerverifiedShow Answer

Swedish company Asko,which prides itself on manufacturing and marketing some of the best-built and most expensive appliances in the world,would probably use which competition-oriented pricing approach?

Correct AnswerverifiedShow Answer

Bundle pricing is considered to be a __________ pricing practice.

Correct AnswerverifiedShow Answer

Total revenue refers to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A conspiracy among firms to set prices for a product is referred to as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Occasionally,prices may rise later in the product's life cycle.This is often due to

Correct AnswerverifiedShow Answer

You can buy a General Electric dishwasher for $399 or you can buy a similar Bosch brand dishwasher for $989.Since Bosch uses its pricing strategy to project a high-quality product image,it is most likely using __________ pricing.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Vizio,Inc.is an up-and-coming contender in the __________ market.

Correct AnswerverifiedShow Answer

Which one of the following statements regarding bundle pricing is most accurate?

Correct AnswerverifiedShow Answer

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With profit-oriented approaches to pricing,a price setter may choose to balance both _ and _ to set price.

Correct Answer
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