Question 1

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

Accepted Answer

A)  target ROI pricing
B)  target profit pricing
C)  target return-on-sales pricing
D)  target return-on-investment pricing
E)  cost-plus-percentage-of-cost pricingF) D) and E)
G) A) and E)

Question 2

Bob Biltmore owns dozens of very successful print shops throughout the Midwest.Biltmore's shops specialize in low-cost black-and-white copies and feature user-friendly machines consumers can easily operate.In recent months,Biltmore has noticed many more competitors in the areas where his stores are located.In an attempt to eliminate the competition,Biltmore has decided to charge a very low price for his black-and-white copies,a price so low his competitors will be forced out of business.After the competition has been driven out,Biltmore plans to raise the price of his copies.Biltmore is planning to engage in the illegal and unethical practice of

Accepted Answer

A)  price fixing.
B)  price inflation.
C)  deceptive pricing.
D)  competitive pricing.
E)  predatory pricing.F) A) and D)
G) A) and E)

Question 3

If the terms of the trade discount are listed as "20/10/5," the number "20" represents

Accepted Answer

A)  20 percent of the suggested retail price that is available to the retailer to cover costs and provide a profit.
B)  20 percent of the suggested wholesale price that is available to the wholesaler to cover costs and provide a profit.
C)  20 percent of the suggested retail price that is available to the jobber to cover costs and provide a profit.
D)  20 percent of the manufacturer's suggested retail price that is available to the ultimate consumer.
E)  20 percent of the suggested retail price that is the profit margin to the manufacturer.F) A) and D)
G) A) and E)

Question 4

Cost-plus pricing refers to

Accepted Answer

A)  summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price.
B)  setting the price of a line of products at a number of different price points.
C)  adding a fixed percentage to the cost of all items in a specific product class.
D)  setting prices to achieve a profit that is a specified percentage of the sales volume.
E)  increasing the price slightly to protect against undue profit losses from unforeseen environmental forces.F) A) and D)
G) D) and E)

Question 5

Figure 14-3
 
-The movement from point B to point C in Figure 14-3 above shows

Accepted Answer

A)  skimming demand.
B)  penetration demand.
C)  that buyers see the product as a bargain and buy more.
D)  that buyers become dubious about the quality and prestige and buy less.
E)  a downturn in the economy.F) A) and B)
G) C) and D)

Question 6

Figure 14-2
 
-Figure 14-2 above represents the four approaches to selecting an appropriate price level.Box C represents which approach?

Accepted Answer

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

Question 7

Penetration pricing is intended to appeal to which market?

Accepted Answer

A)  highly selective,quality-seeking consumers
B)  price-insensitive markets
C)  specialty product markets
D)  the same markets as those targeted with a skimming pricing strategy
E)  the mass marketF) A) and B)
G) None of the above

Question 8

The practice of offering a bargain that is conditional on the purchase of other products may exist when a buyer is offered the "1-Cent Sales," the "Buy 1,Get 1 Free," or the "Get 2 for the Price of 1" deal.Such pricing is legal only if

Accepted Answer

A)  the seller is using bundle pricing.
B)  there is a reasonable amount of inventory to satisfy the needs of the retailers normal traffic flow.
C)  the first items are sold at the regular price,not a price inflated for the offer.
D)  the product is not outdated.
E)  the quantity available to the customer is not limited.F) A) and D)
G) A) and E)

Question 9

Another name for a fixed-price policy is

Accepted Answer

A)  customary pricing.
B)  a one-price policy.
C)  dynamic pricing.
D)  standard markup pricing.
E)  uniform pricing.F) C) and D)
G) D) and E)

Question 10

Which of the following is a cost-oriented pricing method?

Accepted Answer

A)  loss-leader pricing
B)  standard markup pricing
C)  at-,above-,or below-market pricing
D)  price lining
E)  penetration pricingF) A) and E)
G) All of the above

Question 11

When is skimming pricing an effective strategy?

Accepted Answer

Skimming pricing is an effective strateg...

Question 12

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 D)
G) A) and B)

Question 13

Larry's Lawn Care allows customers to use a credit card for purchases.Larry pays 4 percent of the sale to the credit card company.To promote more business,Larry decides to offer a lower price to customers paying cash-that price being 3 percent less than the standard list price.Larry is giving his customers a(n)

Accepted Answer

A)  functional discount.
B)  trade-in allowance.
C)  promotional allowance.
D)  cash discount.
E)  everyday low price.F) B) and C)
G) B) and D)

Question 14

Standard markup pricing is considered to be a ________ approach to pricing.

Accepted Answer

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

Question 15

There are four common approaches to selecting an approximate price level.List them and provide a brief description for each one.

Accepted Answer

Four common approaches to helping find t...

Question 16

Predatory pricing is

Accepted Answer

A)  most effective in the growth stage of the product life cycle.
B)  a popular technique preferred by online businesses.
C)  illegal but often difficult to prosecute.
D)  most effective in business-to-business marketing.
E)  one of the most widely used pricing practices for professional marketers.F) B) and D)
G) A) and D)

Question 17

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) B) and E)
G) C) and D)

Question 18

What is the difference between an EDLP retailer and a high-low retailer? Why does Carmex charge them a different price?

Accepted Answer

Everyday low price (EDLP)retailers,such ...

Question 19

Mark Johnson,the manager of a discount consumer electronics store,was approached by the manufacturer's representative on behalf of a marketer of a popular and profitable line of DVD storage racks.The manufacturer's representative implied that if Johnson didn't raise the retail prices for the storage racks to those paid by the marketer's nondiscount customers,Johnson's supply of racks would be severely curtailed.The manufacturer's representative is guilty of attempting

Accepted Answer

A)  horizontal price fixing.
B)  resale price maintenance.
C)  price discrimination.
D)  predatory pricing.
E)  bait and switch pricing.F) B) and E)
G) C) and D)

Question 20

When you buy a used car from a CarMax dealership,you are offered the car at a "no haggle" price.You can buy it or not,but there is no negotiating the published price because of the seller's

Accepted Answer

A)  customary pricing strategy.
B)  fixed-price policy.
C)  uniform pricing policy.
D)  dynamic pricing policy.
E)  dynamic pricing strategy.F) A) and D)
G) B) and C)

Exam 14: Arriving at the Final Price

Standard markup pricing is considered to be a ________ approach to pricing.

Correct Answer
verified

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

Correct Answer
verified

What is the difference between an EDLP retailer and a high-low retailer? Why does Carmex charge them a different price?

Correct Answer
verified
Everyday low price (EDLP)retailers,such ...
View Answer

Another name for a fixed-price policy is

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

Figure 14-2 -Figure 14-2 above represents the four approaches to selecting an appropriate price level.Box C represents which approach?

Correct Answer
verified

When you buy a used car from a CarMax dealership,you are offered the car at a "no haggle" price.You can buy it or not,but there is no negotiating the published price because of the seller's

Correct Answer
verified

Which of the following is a cost-oriented pricing method?

Correct Answer
verified

Correct Answer
verified

There are four common approaches to selecting an approximate price level.List them and provide a brief description for each one.

Correct Answer
verified
Four common approaches to helping find t...
View Answer

Cost-plus pricing refers to

Correct Answer
verified

The practice of offering a bargain that is conditional on the purchase of other products may exist when a buyer is offered the "1-Cent Sales," the "Buy 1,Get 1 Free," or the "Get 2 for the Price of 1" deal.Such pricing is legal only if

Correct Answer
verified

Penetration pricing is intended to appeal to which market?

Correct Answer
verified

Correct Answer
verified

If the terms of the trade discount are listed as "20/10/5," the number "20" represents

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

Figure 14-3 -The movement from point B to point C in Figure 14-3 above shows

Correct Answer
verified

When is skimming pricing an effective strategy?

Correct Answer
verified
Skimming pricing is an effective strateg...
View Answer

Predatory pricing is

Correct Answer
verified

Exam 14: Arriving at the Final Price

Standard markup pricing is considered to be a ________ approach to pricing.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is the difference between an EDLP retailer and a high-low retailer? Why does Carmex charge them a different price?

Correct AnswerverifiedEveryday low price (EDLP)retailers,such ...View AnswerShow Answer

Another name for a fixed-price policy is

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

Figure 14-2 -Figure 14-2 above represents the four approaches to selecting an appropriate price level.Box C represents which approach?

Correct AnswerverifiedShow Answer

When you buy a used car from a CarMax dealership,you are offered the car at a "no haggle" price.You can buy it or not,but there is no negotiating the published price because of the seller's

Correct AnswerverifiedShow Answer

Which of the following is a cost-oriented pricing method?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

There are four common approaches to selecting an approximate price level.List them and provide a brief description for each one.

Correct AnswerverifiedFour common approaches to helping find t...View AnswerShow Answer

Cost-plus pricing refers to

Correct AnswerverifiedShow Answer

The practice of offering a bargain that is conditional on the purchase of other products may exist when a buyer is offered the "1-Cent Sales," the "Buy 1,Get 1 Free," or the "Get 2 for the Price of 1" deal.Such pricing is legal only if

Correct AnswerverifiedShow Answer

Penetration pricing is intended to appeal to which market?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the terms of the trade discount are listed as "20/10/5," the number "20" represents

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

Figure 14-3 -The movement from point B to point C in Figure 14-3 above shows

Correct AnswerverifiedShow Answer

When is skimming pricing an effective strategy?

Correct AnswerverifiedSkimming pricing is an effective strateg...View AnswerShow Answer

Predatory pricing is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Everyday low price (EDLP)retailers,such ...
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
Four common approaches to helping find t...
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
Skimming pricing is an effective strateg...
View Answer

Correct Answer
verified