Question 1

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 B)
G) B) and C)

Question 2

Price fixing is illegal under the

Accepted Answer

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

Question 3

Wrigley introduced a new flavor of Orbit brand sugar-free chewing gum, mint mojito, and its 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) B) and E)
G) C) and E)

Question 4

A price reduction given when a used product is part of the payment on a new product is referred to as a

Accepted Answer

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

Question 5

Pricing objectives involve

Accepted Answer

A)   reconciling the prices charged by an organization to the values set forth in its business mission.
B)   taking specific steps to capitalize on an organization's internal strengths as they apply to price.
C)   specifying the role of price in an organization's marketing and strategic plans.
D)   taking specific steps to compensate for an organization's weaknesses as they apply to price.
E)   subjectively setting intrinsic values to all products and services offered by an organization.F) B) and E)
G) A) and C)

Question 6

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

Accepted Answer

A)   skimming pricing
B)   target pricing
C)   customary pricing
D)   target return-on-sales pricing
E)   standard markup pricingF) All of the above
G) C) and D)

Question 7

Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

Accepted Answer

A)   Consumer Protection Agency
B)   U.S. Department of Justice
C)   Federal Communications Commission
D)   U.S. Department of Commerce
E)   Federal Trade CommissionF) A) and B)
G) C) and E)

Question 8

If the CEO of the Clorox Co. were to say, "We want to control 60 percent of the bleach market within the next five years," he would have set a ________ pricing objective.

Accepted Answer

A)   profit
B)   sales
C)   unit volume
D)   market share
E)   social responsibilityF) A) and E)
G) B) and C)

Question 9

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) All of the above
G) None of the above

Question 10

Recently, much of the western United States experienced a drought condition and water usage was restricted in Denver. Yet, even though most people used less water, the price of water did not drop. When the drought was declared over, the water company raised water prices. However, the residents of Denver did not use less water. Here, water is

Accepted Answer

A)   price-elastic.
B)   price-sensitive.
C)   price-inelastic.
D)   price-insensitive.
E)   unitary-elastic.F) A) and B)
G) All of the above

Question 11

A reduction from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called

Accepted Answer

A)   the pretax price.
B)   the list price.
C)   the manufacturer's suggested retail price (MSRP) .
D)   a discount.
E)   a trade-in allowance.F) All of the above
G) B) and E)

Question 12

Basic to setting a product's price is the extent of ________. This information is used in estimating the revenues the firm expects to receive.

Accepted Answer

A)   management's commitment to the product relative to other products in the line
B)   the product line into which it will be introduced
C)   customer demand for it
D)   the firm's promotional budget
E)   distribution requirementsF) C) and D)
G) A) and E)

Question 13

A box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry is sold for $1.50 less than the regular price of the products sold separately. This is an example of ________ pricing.

Accepted Answer

A)   penetration
B)   prestige
C)   bundle
D)   odd-even
E)   standard markupF) A) and B)
G) A) and C)

Question 14

A Price Premium Marketing Dashboard shows the dollar sales market share for Red Bull to be 38 percent and the unit volume market share to be 33 percent among selected energy drinks. What is the price premium for Red Bull in 2010?

Accepted Answer

A)   −12.5 percent
B)   −7.5 percent
C)   −5.3 percent
D)   5 percent
E)   15.2 percentF) A) and D)
G) C) and D)

Question 15

Setting different prices for products and services depending on individual buyers and purchase situations in light of demand, cost, and competitive factors is referred to as

Accepted Answer

A)   price lining.
B)   a dynamic price policy.
C)   customary pricing.
D)   price fixing.
E)   discretionary pricing.F) C) and E)
G) C) and D)

Question 16

Setting a price to achieve an annual target return-on-investment (ROI)  is referred to as

Accepted Answer

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

Question 17

Explain the price equation in the context of a new car purchase.

Accepted Answer

The price equation is: Final price = Lis...

Question 18

Figure 11-3b
-In Figure 11-3b above, the demand curve shifts from D1 to D2. This most likely represents

Accepted Answer

A)   an increase in demand that did not require a change in price but was the result of a change in one or more demand factors.
B)   an increase in demand that required a decrease in price.
C)   no change in price and a decrease in demand that results from internal business practice changes.
D)   no change in demand or price but a greater profit due to economies of scale.
E)   a decrease in price from $8 to $6 per unit.F) A) and B)
G) A) and E)

Question 19

The four types of discounts are

Accepted Answer

A)   quantity, trade-in, promotional, and cash.
B)   quantity, seasonal, trade (functional) , and cash.
C)   quantity, seasonal, promotional, and FOB.
D)   cash, trade-in, seasonal, and promotional.
E)   trade-in, promotional, geographic, and functional.F) C) and D)
G) B) and D)

Question 20

Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in a significant increase in quantity demanded. The demand for latex gloves is

Accepted Answer

A)   synergistic.
B)   inelastic.
C)   unitary.
D)   elastic.
E)   static.F) C) and D)
G) None of the above

Exam 11: Pricing Products and Services

Price fixing is illegal under the

Correct Answer
verified

A price reduction given when a used product is part of the payment on a new product is referred to as a

Correct Answer
verified

Basic to setting a product's price is the extent of ________. This information is used in estimating the revenues the firm expects to receive.

Correct Answer
verified

Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

Correct Answer
verified

Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in a significant increase in quantity demanded. The demand for latex gloves is

Correct Answer
verified

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

Pricing objectives involve

Correct Answer
verified

A Price Premium Marketing Dashboard shows the dollar sales market share for Red Bull to be 38 percent and the unit volume market share to be 33 percent among selected energy drinks. What is the price premium for Red Bull in 2010?

Correct Answer
verified

Setting a price to achieve an annual target return-on-investment (ROI) is referred to as

Correct Answer
verified

Setting different prices for products and services depending on individual buyers and purchase situations in light of demand, cost, and competitive factors is referred to as

Correct Answer
verified

Figure 11-3b -In Figure 11-3b above, the demand curve shifts from D1 to D2. This most likely represents

Correct Answer
verified

The four types of discounts are

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Price deals that mislead consumers fall into the category of

Correct Answer
verified

Explain the price equation in the context of a new car purchase.

Correct Answer
verified
The price equation is: Final price = Lis...
View Answer

If the CEO of the Clorox Co. were to say, "We want to control 60 percent of the bleach market within the next five years," he would have set a ________ pricing objective.

Correct Answer
verified

A reduction from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called

Correct Answer
verified

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

Correct Answer
verified

A box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry is sold for $1.50 less than the regular price of the products sold separately. This is an example of ________ pricing.

Correct Answer
verified

Exam 11: Pricing Products and Services

Price fixing is illegal under the

Correct AnswerverifiedShow Answer

A price reduction given when a used product is part of the payment on a new product is referred to as a

Correct AnswerverifiedShow Answer

Basic to setting a product's price is the extent of ________. This information is used in estimating the revenues the firm expects to receive.

Correct AnswerverifiedShow Answer

Deceptive pricing practices are outlawed by legislation and enforced by which federal agency?

Correct AnswerverifiedShow Answer

Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in a significant increase in quantity demanded. The demand for latex gloves is

Correct AnswerverifiedShow Answer

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

Pricing objectives involve

Correct AnswerverifiedShow Answer

A Price Premium Marketing Dashboard shows the dollar sales market share for Red Bull to be 38 percent and the unit volume market share to be 33 percent among selected energy drinks. What is the price premium for Red Bull in 2010?

Correct AnswerverifiedShow Answer

Setting a price to achieve an annual target return-on-investment (ROI) is referred to as

Correct AnswerverifiedShow Answer

Setting different prices for products and services depending on individual buyers and purchase situations in light of demand, cost, and competitive factors is referred to as

Correct AnswerverifiedShow Answer

Figure 11-3b -In Figure 11-3b above, the demand curve shifts from D1 to D2. This most likely represents

Correct AnswerverifiedShow Answer

The four types of discounts are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Price deals that mislead consumers fall into the category of

Correct AnswerverifiedShow Answer

Explain the price equation in the context of a new car purchase.

Correct AnswerverifiedThe price equation is: Final price = Lis...View AnswerShow Answer

If the CEO of the Clorox Co. were to say, "We want to control 60 percent of the bleach market within the next five years," he would have set a ________ pricing objective.

Correct AnswerverifiedShow Answer

A reduction from the list price that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller is called

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry is sold for $1.50 less than the regular price of the products sold separately. This is an example of ________ pricing.

Correct AnswerverifiedShow Answer

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The price equation is: Final price = Lis...
View Answer

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