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An ad campaign by Suave shampoo asked television viewers to identify the hair that was shampooed and conditioned with Suave products and the hair on which expensive salon hair-care products were used.The idea of the ad was that a person could not tell by looking that a woman was using the much cheaper Suave brand.By making price its selling point, Suave is most likely using _________.


A) demand backward pricing
B) below-market pricing
C) loss-leader pricing
D) prestige pricing
E) skimming pricing

F) D) and E)
G) C) and D)

Correct Answer

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


A) target return-on-investment pricing.
B) target return-on-profit pricing.
C) target return-on-sales pricing.
D) target revenue pricing.
E) customary pricing.

F) C) and D)
G) A) and B)

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


A) cash discount
B) functional discount
C) seasonal discount
D) trade-in allowance
E) promotional allowance

F) A) and D)
G) None of the above

Correct Answer

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Market share is the ratio of the __________ to those of the industry.


A) target return on sales
B) marginal profit of the firm
C) marketing expenses of the firm
D) firm's sales revenues or unit sales
E) profits of the firm

F) A) and D)
G) A) and C)

Correct Answer

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With cost-oriented approaches a price setter stresses the __________ side of the pricing problem, not the __________ side.


A) cost; revenue
B) cost; profit
C) cost; service
D) cost; supply
E) cost; demand

F) A) and D)
G) A) and C)

Correct Answer

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The Apple iPad was recently introduced at an initial price of $650 for the 16 GB version.People waited in line overnight so they could be one of the first to own these unique pieces of electronics.Which pricing strategy did Apple use to help recoup its research and development costs for the iPad?


A) price lining
B) experience curve pricing
C) customary pricing
D) skimming pricing
E) target pricing

F) A) and B)
G) C) and D)

Correct Answer

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Barter is the practice of exchanging products and services for other products and services rather than for __________.


A) perceptions
B) promises
C) money
D) tariffs
E) value

F) B) and D)
G) B) and C)

Correct Answer

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Washburn Guitars broke their guitars into four distinct market segments.Each segment would be priced accordingly.Their mass customization instruments were intended to appeal to


A) first-time buyers.
B) professional musicians.
C) stars and famous musicians.
D) large institutional buys such as band programs.
E) intermediate skill players who might (or might not) become professional musicians.

F) A) and C)
G) A) and B)

Correct Answer

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


A) consumer income.
B) consumer psychographics.
C) current economic stressors.
D) current political agendas.
E) green substitutes.

F) B) and D)
G) B) and E)

Correct Answer

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To reward wholesalers and retailers for having supplies in stock at the time they are wanted by customers, manufacturers offer


A) noncumulative discounts.
B) cumulative discounts.
C) functional discounts
D) seasonal discounts.
E) trade discounts.

F) B) and E)
G) A) and B)

Correct Answer

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Price discrimination refers to


A) an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.
B) the practice of charging a very low price for a product with the intent of driving competitors out of business.
C) the practice of charging different prices to different buyers for goods of like grade and quality.
D) a conspiracy among firms to set prices for a product or service.
E) a seller's requirement that the purchaser of one product also buy another product in the line.

F) A) and B)
G) B) and D)

Correct Answer

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In response to Duracell's introduction of the Duracell Ultra battery, Energizer introduced an Advanced Formula battery, but unlike Duracell, Energizer priced its batteries at a low initial price to attract the mass market.Was Energizer's pricing strategy to take market share from Duracell a success?


A) No, because consumers equate quality of batteries with higher prices.
B) No, because consumers are price-insensitive when it comes to batteries.
C) Yes, because the positive association with the "Energizer Bunny" kept going, and going, and going.
D) Yes, because consumers typically respond positively to cost-plus pricing.
E) Yes, because the demand for batteries has unitary elasticity.

F) A) and E)
G) B) and E)

Correct Answer

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Odd-even pricing refers to


A) setting prices one way for product lines and another way for individual brands.
B) setting prices of luxury items at even price points and setting the price of necessities at odd price points.
C) setting prices a few dollars or cents under an even number.
D) adding a fixed percentage to the cost of all items in a specific product class.
E) offering retailers "baker's dozens," thirteen items for the price of twelve to encourage larger purchase orders.

F) A) and E)
G) B) and C)

Correct Answer

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Attorneys' fees, entrance fees, train fares, and organization dues are all


A) premiums.
B) bartering tools.
C) mediums of exchange.
D) synonyms for price.
E) examples of liquidity.

F) A) and B)
G) A) and C)

Correct Answer

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


A) Bundle pricing is intended to benefit the consumer not the seller.
B) Bundle pricing is really bundle "packaging" since the price charged for the set is usually the same or more than the price charged had the items been purchased separately.
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 oriented on the idea that consumers value the individual items more than they value the grouping of the package.

F) B) and E)
G) A) and B)

Correct Answer

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A method of pricing where the price the seller quotes includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur is referred to as


A) FOB destination pricing.
B) FOB origin pricing.
C) geographical allowance.
D) uniform delivered pricing.
E) transport customer allowance.

F) B) and D)
G) A) and E)

Correct Answer

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Vertical price fixing refers to


A) two or more competitors explicitly or implicitly setting prices.
B) the practice of charging different prices to different buyers for goods of like grade and quality.
C) controlling agreements between independent buyers and sellers whereby sellers are required to not sell products below a minimum retail price horizontal price fixing.
D) a conspiracy among firms to set prices for a product or service.
E) a seller's requirement that the purchaser of one product also buy another product in the line.

F) A) and D)
G) All of the above

Correct Answer

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________.


A) range-line pricing
B) manufacturer managed accounts
C) regional rollbacks
D) delayed payment penalties
E) price fixing

F) A) and E)
G) A) and C)

Correct Answer

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Demand factors refer to


A) the number of consumers who can afford to purchase a product or service.
B) the price that should be charged for a given product.
C) consumers' willingness and ability to pay for goods and services.
D) the number of consumers who want to purchase a product.
E) the number of consumers who can purchase a product.

F) C) and E)
G) B) and E)

Correct Answer

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Discounts refer to reductions from the __________ that a seller gives a buyer as a reward for some activity of the buyer that is favorable to the seller.


A) pretax price
B) list price
C) manufacturer's retail price
D) manufacturer's cost
E) seller's cost

F) A) and B)
G) A) and C)

Correct Answer

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Showing 221 - 240 of 414

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