Question 1

List four key factors used to estimate demand.

Accepted Answer

Of course, price is one factor. Economis...

Question 2

The sum of the expenses of the firm that change with the quantity of the product that is produced and sold is referred to as

Accepted Answer

A)  fixed cost.
B)  total cost.
C)  marginal cost.
D)  unit cost.
E)  variable cost.F) B) and E)
G) None of the above

Question 3

-What pricing strategy did the architectural firm use to set the construction price for the Rock and Roll Hall of Fame, which is shown in the photo above?

Accepted Answer

A)  cost-plus pricing
B)  customary pricing
C)  standard markup pricing
D)  yield management pricing
E)  prestige pricingF) B) and E)
G) B) and D)

Question 4

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 allowanceF) B) and D)
G) B) and C)

Question 5

The first Apple iPhone was introduced in 2007 at an initial price of $600. People waited in line overnight so they could be one of the first to own this unique smartphone. Which pricing strategy did Apple use to help recoup its research and development costs for the smartphone?

Accepted Answer

A)  penetration pricing
B)  experience curve pricing
C)  customary pricing
D)  skimming pricing
E)  target pricingF) B) and C)
G) All of the above

Question 6

Most consumers realize that the quality of diamonds varies, and most believe the higher the price of a diamond, the higher its quality. This is an example of price influencing the perception of overall quality, and therefore __________ to consumers.

Accepted Answer

A)  acceptable cost
B)  perceptual investment
C)  barter potential
D)  return on investment
E)  valueF) None of the above
G) C) and D)

Question 7

What is standard markup pricing and when would it be used?

Accepted Answer

Standard markup pricing entails adding a...

Question 8

The total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and variable cost, is referred to as

Accepted Answer

A)  overhead cost.
B)  total cost.
C)  unit cost.
D)  average cost.
E)  marginal cost.F) None of the above
G) C) and D)

Question 9

A box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry for 10 cents more than the regular price of the dishwasher detergent is an example of __________ pricing.

Accepted Answer

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

Question 10

Which of the following statements regarding sales goals is most accurate?

Accepted Answer

A)  For marketing managers, sales revenue or unit sales can be easily translated into meaningful targets for a product line or brand.
B)  Cutting prices for a single product in a product line to raise unit sales often results in an increase in sales for related products in the line.
C)  Very often, cutting prices results in a decrease in market share.
D)  Setting unit volume sales as a pricing objective results in price wars with competitors, so the practice is limited to industries with few competitors.
E)  An advantage of increasing unit volume sales is that it always results in an increase in profits.F) A) and B)
G) B) and C)

Question 11

To increase value, marketers may __________, decrease price, or do both.

Accepted Answer

A)  decrease benefits
B)  increase benefits
C)  increase price
D)  increase advertising
E)  do nothing and let the perceived value of the item increase as it matures in the life cycleF) C) and D)
G) A) and B)

Question 12

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) A) and D)

Question 13

In one of its least favorite actions, Amazon.com was caught fiddling with its prices. Avid DVD buyers, buying in quantity for resale, found that the online retailer was offering different customers different prices for the same DVD, and complained vociferously. Company officials admitted that the company was trying to see how much it could charge for an item before buyers balked. Amazon was caught attempting

Accepted Answer

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

Question 14

Cash payments or an extra amount of free goods awarded sellers in the channel for undertaking certain advertising or selling activities to promote the product is referred to as a

Accepted Answer

A)  promotional allowance.
B)  quantity discount.
C)  seasonal discount.
D)  purchase inducement.
E)  flexible pricing policy.F) D) and E)
G) A) and C)

Question 15

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 E)
G) A) and D)

Question 16

To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives __________ discounts.

Accepted Answer

A)  seasonal
B)  cash
C)  trade
D)  quantity
E)  cumulativeF) B) and E)
G) A) and C)

Question 17

Tara is enrolled for spring semester at college. The tuition is $6,000, but she has a scholarship for $1,000 as well as a work-study grant of $1,500. The health fees and student activity fees are $150 for the semester. What is the final price that Tara will pay for the spring semester?

Accepted Answer

A)  $2,500
B)  $2,650
C)  $3,150
D)  $3,650
E)  $6,150F) C) and D)
G) A) and E)

Question 18

Explain predatory pricing.

Accepted Answer

Predatory pricing is the practice of cha...

Question 19

Determining cost, volume, and profit relationships would occur during which stage of the price-setting process?

Accepted Answer

A)  Defining the scope of the product
B)  Selecting an approximate price level
C)  Setting the list or quoted price
D)  Evaluating the success of the price strategy
E)  Making special adjustments to the list priceF) C) and D)
G) D) and E)

Question 20

Yield management pricing refers to

Accepted Answer

A)  controlling the production of products based upon seasonal demand.
B)  deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well.
C)  charging the same prices during different times of the day or days of the week to reflect variations in supply for the service.
D)  offering significant price discounts to wholesalers who agree to purchase products in advance for a period of a year or more at a time.
E)  charging different prices to maximize revenue for a set amount of capacity at any given timeF) None of the above
G) A) and B)

Exam 11: Pricing Products and Services

What is standard markup pricing and when would it be used?

Correct Answer
verified
Standard markup pricing entails adding a...
View Answer

Correct Answer
verified

To increase value, marketers may __________, decrease price, or do both.

Correct Answer
verified

Tara is enrolled for spring semester at college. The tuition is $6,000, but she has a scholarship for $1,000 as well as a work-study grant of $1,500. The health fees and student activity fees are $150 for the semester. What is the final price that Tara will pay for the spring semester?

Correct Answer
verified

List four key factors used to estimate demand.

Correct Answer
verified
Of course, price is one factor. Economis...
View Answer

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

Correct Answer
verified

The first Apple iPhone was introduced in 2007 at an initial price of $600. People waited in line overnight so they could be one of the first to own this unique smartphone. Which pricing strategy did Apple use to help recoup its research and development costs for the smartphone?

Correct Answer
verified

The total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and variable cost, is referred to as

Correct Answer
verified

Most consumers realize that the quality of diamonds varies, and most believe the higher the price of a diamond, the higher its quality. This is an example of price influencing the perception of overall quality, and therefore __________ to consumers.

Correct Answer
verified

-What pricing strategy did the architectural firm use to set the construction price for the Rock and Roll Hall of Fame, which is shown in the photo above?

Correct Answer
verified

A box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry for 10 cents more than the regular price of the dishwasher detergent is an example of __________ pricing.

Correct Answer
verified

Explain predatory pricing.

Correct Answer
verified
Predatory pricing is the practice of cha...
View 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 Answer
verified

The sum of the expenses of the firm that change with the quantity of the product that is produced and sold is referred to as

Correct Answer
verified

Yield management pricing refers to

Correct Answer
verified

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

Correct Answer
verified

Determining cost, volume, and profit relationships would occur during which stage of the price-setting process?

Correct Answer
verified

To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives __________ discounts.

Correct Answer
verified

Which of the following statements regarding sales goals is most accurate?

Correct Answer
verified

Cash payments or an extra amount of free goods awarded sellers in the channel for undertaking certain advertising or selling activities to promote the product is referred to as a

Correct Answer
verified

Exam 11: Pricing Products and Services

What is standard markup pricing and when would it be used?

Correct AnswerverifiedStandard markup pricing entails adding a...View AnswerShow Answer

Correct AnswerverifiedShow Answer

To increase value, marketers may __________, decrease price, or do both.

Correct AnswerverifiedShow Answer

Tara is enrolled for spring semester at college. The tuition is $6,000, but she has a scholarship for $1,000 as well as a work-study grant of $1,500. The health fees and student activity fees are $150 for the semester. What is the final price that Tara will pay for the spring semester?

Correct AnswerverifiedShow Answer

List four key factors used to estimate demand.

Correct AnswerverifiedOf course, price is one factor. Economis...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

The first Apple iPhone was introduced in 2007 at an initial price of $600. People waited in line overnight so they could be one of the first to own this unique smartphone. Which pricing strategy did Apple use to help recoup its research and development costs for the smartphone?

Correct AnswerverifiedShow Answer

The total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and variable cost, is referred to as

Correct AnswerverifiedShow Answer

Most consumers realize that the quality of diamonds varies, and most believe the higher the price of a diamond, the higher its quality. This is an example of price influencing the perception of overall quality, and therefore __________ to consumers.

Correct AnswerverifiedShow Answer

-What pricing strategy did the architectural firm use to set the construction price for the Rock and Roll Hall of Fame, which is shown in the photo above?

Correct AnswerverifiedShow Answer

A box of Cascade dishwasher detergent shrink-wrapped with a bottle of Jet Dry for 10 cents more than the regular price of the dishwasher detergent is an example of __________ pricing.

Correct AnswerverifiedShow Answer

Explain predatory pricing.

Correct AnswerverifiedPredatory pricing is the practice of cha...View AnswerShow 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

The sum of the expenses of the firm that change with the quantity of the product that is produced and sold is referred to as

Correct AnswerverifiedShow Answer

Yield management pricing refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Determining cost, volume, and profit relationships would occur during which stage of the price-setting process?

Correct AnswerverifiedShow Answer

To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives __________ discounts.

Correct AnswerverifiedShow Answer

Which of the following statements regarding sales goals is most accurate?

Correct AnswerverifiedShow Answer

Cash payments or an extra amount of free goods awarded sellers in the channel for undertaking certain advertising or selling activities to promote the product is referred to as a

Correct AnswerverifiedShow Answer

Correct Answer
verified
Standard markup pricing entails adding a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Of course, price is one factor. Economis...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Predatory pricing is the practice of cha...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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