Question 1

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) None of the above
G) A) and C)

Question 2

Setting different prices for products and services in real time in response to supply and demand conditions is referred to as

Accepted Answer

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

Question 3

Talbots sells women's clothes.A long-sleeved scoop neck T-shirt with the Talbots label costs $45.By comparison,you can buy a T-shirt for $5 at a Family Dollar Store,but it won't have the prestigious Talbots label or quality.What kind of demand-oriented approach to pricing does Talbots use?

Accepted Answer

A)  experience curve pricing
B)  skimming pricing
C)  demand-backward pricing
D)  prestige pricing
E)  flexible pricingF) A) and E)
G) C) and D)

Question 4

Which of the following statements about geographical adjustments to price is most accurate?

Accepted Answer

A)  In FOB origin pricing,the seller selects the mode of transportation.
B)  In FOB with freight-allowed pricing,the seller must pay for all transportation costs.
C)  Multiple-zone pricing is sometimes referred to as "spider web" pricing.
D)  Basing-point pricing methods have been used in industries where freight expenses are a significant part of the total cost to the buyer.
E)  Geographical adjustments can be subject to government regulation if the firm cannot supply objective data (lists of mountains,rivers,weather conditions,etc. ) explaining why those adjustments need to be made.F) A) and B)
G) A) and D)

Question 5

In some cases,penetration pricing may follow skimming pricing.The skimming pricing would help ________ and the penetration pricing would help

Accepted Answer

A)  increase market share;attract price-insensitive customers.
B)  attract price-sensitive customers;increase market share.
C)  recoup initial research and development costs;increase market share.
D)  recoup initial research and development costs;improve firm reputation.
E)  increase market share;attract price insensitive customers.F) All of the above
G) A) and D)

Question 6

The two forms of cost-plus pricing are

Accepted Answer

A)  cost-plus-fixed-fee pricing and cost-plus-variable-fee pricing.
B)  cost-plus-ROI pricing and cost-minus-ROI pricing.
C)  target return on sales pricing and target return on investment pricing.
D)  cost-plus-percentage-of-cost pricing and cost-plus-fixed-fee pricing.
E)  dynamic pricing and flexible pricing.F) A) and D)
G) D) and E)

Question 7

To reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs,manufacturers offer

Accepted Answer

A)  noncumulative discounts.
B)  cumulative discounts.
C)  trade discounts.
D)  seasonal discounts.
E)  functional discounts.F) C) and D)
G) None of the above

Question 8

Family Dollar Stores,like Dollar Value Stores and 99¢ Only Stores,use what type of pricing policy?

Accepted Answer

A)  dynamic pricing
B)  customary pricing
C)  flexible pricing
D)  fixed-price
E)  at-market pricingF) C) and E)
G) A) and D)

Question 9

The pricing approach that estimates the price that ultimate consumers would be willing to pay for a product;works backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers is referred to as

Accepted Answer

A)  cost-benefit pricing.
B)  cost-plus percentage-of-cost pricing.
C)  target pricing.
D)  cost-plus fixed-fee pricing.
E)  product feature pricing.F) B) and C)
G) B) and E)

Question 10

All of the following are demand-oriented approaches to selecting an approximate price level except which?

Accepted Answer

A)  odd-even
B)  yield management
C)  cost-plus
D)  bundle
E)  prestigeF) A) and B)
G) B) and E)

Question 11

Which of the following statements about everyday low pricing (EDLP) is most accurate?

Accepted Answer

A)  EDLP encourages manufacturer allowances.
B)  Supermarkets have hailed EDLP as the most effective form of value pricing.
C)  Some argue that EDLP without price specials is boring for many grocery shoppers.
D)  EDLP allows supermarkets to use deeply discounted price specials.
E)  EDLP can increase average retail prices by as much as 10 percent.F) A) and B)
G) None of the above

Question 12

A ________ approach often results in changing prices based on time,day,week,or season.

Accepted Answer

A)  skimming pricing
B)  bundle pricing
C)  yield management pricing
D)  target return on investment pricing
E)  standard markup pricingF) A) and B)
G) A) and C)

Question 13

What is experience curve pricing and how does it relate to marketing strategies?

Accepted Answer

Experience curve pricing is based on the...

Question 14

Price lining refers to

Accepted Answer

A)  charging different prices to different buyers for goods of like grade and quality.
B)  setting a low initial price on a new product to appeal immediately to the mass market.
C)  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.
D)  setting prices a few dollars or cents under an even number.
E)  setting the price of a line of products at a number of different specific pricing points.F) A) and E)
G) A) and D)

Question 15

After offering a promotional allowance,the price of a product returns to its regular price level.When this happens,the retail store's gross margin on that product ________ on those items that were bought with the allowance but not sold during the price special promotion.

Accepted Answer

A)  decreases substantially
B)  increases substantially
C)  remains the same
D)  fluctuates wildly
E)  vanishesF) B) and C)
G) B) and E)

Question 16

The retail price of mobile phones (unsubsidized) has decreased from $4,000 in 1983 when Motorola commercialized the device,to less than $99 today as the volume increased from zero to millions of units sold.This is due in large part to which type of pricing approach?

Accepted Answer

A)  skimming pricing
B)  prestige pricing
C)  experience curve pricing
D)  odd-even pricing
E)  customary pricingF) A) and E)
G) A) and B)

Question 17

Resale price maintenance was declared illegal in 1975 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) All of the above
G) A) and B)

Question 18

Penetration 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 B)
G) All of the above

Question 19

Trade discounts are offered to resellers in the marketing channel on the basis of the marketing activities they are expected to perform in the future and

Accepted Answer

A)  the frequency of the order.
B)  where they are in the channel.
C)  when orders are placed during the year.
D)  the length of the relationship with the manufacturer.
E)  the size of the order.F) A) and B)
G) None of the above

Question 20

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 each.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 D)
G) A) and B)

Exam 14: Arriving at the Final Price

Trade discounts are offered to resellers in the marketing channel on the basis of the marketing activities they are expected to perform in the future and

Correct Answer
verified

The retail price of mobile phones (unsubsidized) has decreased from $4,000 in 1983 when Motorola commercialized the device,to less than $99 today as the volume increased from zero to millions of units sold.This is due in large part to which type of pricing approach?

Correct Answer
verified

Penetration pricing is considered to be a ________ approach to pricing.

Correct Answer
verified

All of the following are demand-oriented approaches to selecting an approximate price level except which?

Correct Answer
verified

The two forms of cost-plus pricing are

Correct Answer
verified

After offering a promotional allowance,the price of a product returns to its regular price level.When this happens,the retail store's gross margin on that product ________ on those items that were bought with the allowance but not sold during the price special promotion.

Correct Answer
verified

To reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs,manufacturers offer

Correct Answer
verified

What is experience curve pricing and how does it relate to marketing strategies?

Correct Answer
verified
Experience curve pricing is based on the...
View Answer

A ________ approach often results in changing prices based on time,day,week,or season.

Correct Answer
verified

Talbots sells women's clothes.A long-sleeved scoop neck T-shirt with the Talbots label costs $45.By comparison,you can buy a T-shirt for $5 at a Family Dollar Store,but it won't have the prestigious Talbots label or quality.What kind of demand-oriented approach to pricing does Talbots use?

Correct Answer
verified

In some cases,penetration pricing may follow skimming pricing.The skimming pricing would help ________ and the penetration pricing would help

Correct Answer
verified

Which of the following statements about everyday low pricing (EDLP) is most accurate?

Correct Answer
verified

Which of the following statements about geographical adjustments to price is most accurate?

Correct Answer
verified

Price lining refers to

Correct Answer
verified

Resale price maintenance was declared illegal in 1975 under the

Correct Answer
verified

The pricing approach that estimates the price that ultimate consumers would be willing to pay for a product;works backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers is referred to as

Correct Answer
verified

Setting different prices for products and services in real time in response to supply and demand conditions is referred to as

Correct Answer
verified

Family Dollar Stores,like Dollar Value Stores and 99¢ Only Stores,use what type of pricing policy?

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Exam 14: Arriving at the Final Price

Trade discounts are offered to resellers in the marketing channel on the basis of the marketing activities they are expected to perform in the future and

Correct AnswerverifiedShow Answer

The retail price of mobile phones (unsubsidized) has decreased from $4,000 in 1983 when Motorola commercialized the device,to less than $99 today as the volume increased from zero to millions of units sold.This is due in large part to which type of pricing approach?

Correct AnswerverifiedShow Answer

Penetration pricing is considered to be a ________ approach to pricing.

Correct AnswerverifiedShow Answer

All of the following are demand-oriented approaches to selecting an approximate price level except which?

Correct AnswerverifiedShow Answer

The two forms of cost-plus pricing are

Correct AnswerverifiedShow Answer

After offering a promotional allowance,the price of a product returns to its regular price level.When this happens,the retail store's gross margin on that product ________ on those items that were bought with the allowance but not sold during the price special promotion.

Correct AnswerverifiedShow Answer

To reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs,manufacturers offer

Correct AnswerverifiedShow Answer

What is experience curve pricing and how does it relate to marketing strategies?

Correct AnswerverifiedExperience curve pricing is based on the...View AnswerShow Answer

A ________ approach often results in changing prices based on time,day,week,or season.

Correct AnswerverifiedShow Answer

Talbots sells women's clothes.A long-sleeved scoop neck T-shirt with the Talbots label costs $45.By comparison,you can buy a T-shirt for $5 at a Family Dollar Store,but it won't have the prestigious Talbots label or quality.What kind of demand-oriented approach to pricing does Talbots use?

Correct AnswerverifiedShow Answer

In some cases,penetration pricing may follow skimming pricing.The skimming pricing would help ________ and the penetration pricing would help

Correct AnswerverifiedShow Answer

Which of the following statements about everyday low pricing (EDLP) is most accurate?

Correct AnswerverifiedShow Answer

Which of the following statements about geographical adjustments to price is most accurate?

Correct AnswerverifiedShow Answer

Price lining refers to

Correct AnswerverifiedShow Answer

Resale price maintenance was declared illegal in 1975 under the

Correct AnswerverifiedShow Answer

The pricing approach that estimates the price that ultimate consumers would be willing to pay for a product;works backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers is referred to as

Correct AnswerverifiedShow Answer

Setting different prices for products and services in real time in response to supply and demand conditions is referred to as

Correct AnswerverifiedShow Answer

Family Dollar Stores,like Dollar Value Stores and 99¢ Only Stores,use what type of pricing policy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Experience curve pricing is based on the...
View Answer

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Correct Answer
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