Question 1

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

Accepted Answer

A)   an increased demand for the product at a lower price.
B)   derived 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) B) and D)
G) A) and B)

Question 2

Target return-on-sales pricing refers to

Accepted Answer

A)   adjusting the price of a product so it is "in line" with that of its largest competitor.
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 revenue.
E)   setting a price based on a specific annual dollar target profit volume.F) A) and D)
G) A) and B)

Question 3

Flexible Pricing Chart
-Consider the flexible pricing chart above,which shows the results of a National Bureau of Economic Research study of 750,000 car purchases. The data indicate that some groups of car buyers,on average,paid roughly $105,$423,and $483 more,respectively,for a new car in the $21,000 range than the typical purchaser.Who are the car buyers in "B?"

Accepted Answer

A)   women
B)   the elderly
C)   Hispanics
D)   African Americans
E)   Asian AnericansF) A) and D)
G) B) and E)

Question 4

some cases,manufacturers design products for different price points and retailers apply __________ to achieve the three or four different price points offered to consumers.

Accepted Answer

A)   progressively higher markup percentages
B)   different markup percentages depending how long the item remains on their shelves
C)   above-, at-, or below-market pricing
D)   approximately the same markup percentages
E)   elasticity of demand pricing calculationsF) A) and D)
G) A) and C)

Question 5

Customary pricing refers to

Accepted Answer

A)   a pricing method where the price the seller quotes includes all transportation costs.
B)   setting the same price for similar customers who buy the same product and quantities under the same conditions.
C)   deliberately selling a product below its list price to attract attention to it.
D)   setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.
E)   pricing based on what the market will bear.F) None of the above
G) C) and E)

Question 6

the cash discount terms for a $500 purchase are 4/10 net 30,the number 10 refers to

Accepted Answer

A)   the percentage discounted if the bill is paid within 30 days.
B)   the percentage increase in price if the bill is not paid within 10 days.
C)   the number of days for which the discount is valid.
D)   the discount in dollars per unit if the order is paid on time in 30 days.
E)   the penalty in dollars if the bill is not paid within 10 days.F) None of the above
G) C) and D)

Question 7

skimming pricing policy is likely to be most effective when: (1) enough customers are willing to buy immediately at the high initial price; (2) when the high initial price does not attract competitors; (3) customers interpret high price as signifying high quality; and (4) __________.

Accepted Answer

A)   consumers tend to be price sensitive
B)   lowering the price has only a minor effect on increasing sales volume and reducing unit costs
C)   a lower price will significantly reduce unit costs
D)   it will be easier to set measurable sales unit goals
E)   consumers perceive the product to be similar to other products on the marketF) B) and E)
G) A) and D)

Question 8

Noncumulative quantity discounts refer to

Accepted Answer

A)   discounts that are based on a series of orders rather than on the size of an individual order.
B)   one-time discounts per customer or household.
C)   one-time discounts that must be used within a certain time frame or they become null and void.
D)   discounts used to place new products on supermarket shelves.
E)   discounts that are based on the size of an individual purchase order, rather than a series of orders.F) A) and E)
G) C) and D)

Question 9

Experience curve pricing refers to

Accepted Answer

A)   the method of pricing where the price of a product often rises following the expansion of costs associated with the firm's producing and selling an increased volume of the product.
B)   the point at which profits double then double again as more consumers buy the product.
C)   a predictive pricing plan based upon the knowledge that the prices will fluctuate in a predictable pattern within a given industry.
D)   a method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10 percent to 30 percent each time a firm's experience at producing and selling them doubles.
E)   a pricing strategy that uses price estimates based upon the consensus of the salesforce and the firm's top management team.F) B) and D)
G) A) and E)

Question 10

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

Accepted Answer

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

Question 11

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) None of the above
G) B) and D)

Question 12

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

Accepted Answer

A)   cost-plus pricing
B)   skimming pricing
C)   prestige pricing
D)   loss-leader pricing
E)   bundle pricingF) A) and B)
G) A) and C)

Question 13

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 markdown 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 E)
G) A) and D)

Question 14

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 buyer deducts the transportation costs from the list price.
C)   Multiple-zone pricing is sometimes referred to as "spider web" pricing.
D)   Basing point pricing seems to have been used in industries where freight expenses are only a minor 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) B) and E)
G) C) and D)

Question 15

Odd-even pricing is most closely related to

Accepted Answer

A)   retailers' perceptions of price.
B)   wholesalers' markups.
C)   a manufacturer's costs.
D)   competitors' perceptions of price.
E)   customers' perceptions of price.F) A) and B)
G) A) and C)

Question 16

Which of the following is a form of flexible pricing?

Accepted Answer

A)   odd-even pricing
B)   yield management pricing
C)   above-, at-, or below-market pricing
D)   target pricing
E)   cost-plus pricingF) C) and D)
G) B) and E)

Question 17

Which of the following statements regarding a trade-in allowance is most accurate?

Accepted Answer

A)   A trade-in allowance is a noncash exchange of one product for another of equal or greater value.
B)   A trade-in allowance is an effective way to lower the price a buyer has to pay without formally reducing the list price.
C)   A trade-in allowance is a cash-back payment when a more expensive item is replaced with a less expensive item.
D)   A trade-in allowance is the return of money based on proof of purchase.
E)   A trade-in allowance is a cash payment to a retailer for extra in-store support or special featuring of the brand.F) A) and D)
G) A) and E)

Question 18

Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price is referred to as __________.

Accepted Answer

A)   standard markup pricing
B)   experience curve pricing
C)   cost-plus pricing
D)   product-line pricing
E)   target return-on-investment pricingF) B) and D)
G) A) and C)

Question 19

Swedish company Asko,which prides itself on manufacturing and marketing some of the best-built and most expensive appliances in the world,would probably use which competition-oriented pricing approach?

Accepted Answer

A)   customary pricing
B)   above-market pricing
C)   loss-leader pricing
D)   at-market pricing
E)   below-market pricingF) A) and E)
G) None of the above

Question 20

is standard markup pricing and when would it be used?

Accepted Answer

Standard markup pricing entails adding a...

Exam 14: Arriving at the Final Price

Noncumulative quantity discounts refer to

Correct Answer
verified

Swedish company Asko,which prides itself on manufacturing and marketing some of the best-built and most expensive appliances in the world,would probably use which competition-oriented pricing approach?

Correct Answer
verified

Which of the following is a form of flexible pricing?

Correct Answer
verified

skimming pricing policy is likely to be most effective when: (1) enough customers are willing to buy immediately at the high initial price; (2) when the high initial price does not attract competitors; (3) customers interpret high price as signifying high quality; and (4) __________.

Correct Answer
verified

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

Correct Answer
verified

Odd-even pricing is most closely related to

Correct Answer
verified

Customary pricing refers to

Correct Answer
verified

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

Correct Answer
verified

is standard markup pricing and when would it be used?

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

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

Target return-on-sales pricing refers to

Correct Answer
verified

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

Correct Answer
verified

two forms of cost-plus pricing are

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

the cash discount terms for a $500 purchase are 4/10 net 30,the number 10 refers to

Correct Answer
verified

Experience curve pricing refers to

Correct Answer
verified

Which of the following statements regarding a trade-in allowance is most accurate?

Correct Answer
verified

Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price is referred to as __________.

Correct Answer
verified

some cases,manufacturers design products for different price points and retailers apply __________ to achieve the three or four different price points offered to consumers.

Correct Answer
verified

Exam 14: Arriving at the Final Price

Noncumulative quantity discounts refer to

Correct AnswerverifiedShow Answer

Swedish company Asko,which prides itself on manufacturing and marketing some of the best-built and most expensive appliances in the world,would probably use which competition-oriented pricing approach?

Correct AnswerverifiedShow Answer

Which of the following is a form of flexible pricing?

Correct AnswerverifiedShow Answer

skimming pricing policy is likely to be most effective when: (1) enough customers are willing to buy immediately at the high initial price; (2) when the high initial price does not attract competitors; (3) customers interpret high price as signifying high quality; and (4) __________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Odd-even pricing is most closely related to

Correct AnswerverifiedShow Answer

Customary pricing refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

is standard markup pricing and when would it be used?

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

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

Target return-on-sales pricing refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

two forms of cost-plus pricing are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

the cash discount terms for a $500 purchase are 4/10 net 30,the number 10 refers to

Correct AnswerverifiedShow Answer

Experience curve pricing refers to

Correct AnswerverifiedShow Answer

Which of the following statements regarding a trade-in allowance is most accurate?

Correct AnswerverifiedShow Answer

Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price is referred to as __________.

Correct AnswerverifiedShow Answer

some cases,manufacturers design products for different price points and retailers apply __________ to achieve the three or four different price points offered to consumers.

Correct AnswerverifiedShow 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

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified