Question 1

For most products,it is difficult to identify a specific market price for a product or product class.Still,marketing managers often have a subjective feel for the competitors' price or market price.Using this benchmark,they then may deliberately choose a strategy of

Accepted Answer

A)  above-,at-,or below-market pricing.
B)  loss-leader pricing.
C)  penetration pricing.
D)  standard markup pricing.
E)  experience curve pricing.F) A) and E)
G) C) and D)

Question 2

The Robinson-Patman Act covers promotional allowances as well as discounts.To legally offer promotional allowances to buyers,the seller must do so on a(n) __________ to all buyers businesses distributing the seller's products.

Accepted Answer

A)  proportionally equal basis
B)  limited basis
C)  disproportionally equal basis
D)  geographical basis
E)  across the boardF) B) and C)
G) B) and E)

Question 3

According to Figure 14-8 above,how much is the jobber trade discount?

Accepted Answer

A)  $3.15
B)  $7.00
C)  $30.00
D)  $63.00
E)  $70.00F) A) and E)
G) None of the above

Question 4

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would consider a fixed price or a dynamic pricing policy,company and competitive effects,and incremental costs and revenues?

Accepted Answer

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

Question 5

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

Question 6

Marketers using a dynamic pricing policy should take care to avoid

Accepted Answer

A)  requests for allowances.
B)  price discrimination.
C)  contradictory promotions.
D)  changes in market segmentation.
E)  support from government agencies.F) B) and C)
G) A) and C)

Question 7

Figure 14-5 above shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI) .What is the ROI for Scenario "B"?

Accepted Answer

A)  0%
B)  5%
C)  10%
D)  14%
E)  17%F) A) and B)
G) C) and E)

Question 8

The Swedish manufacturer of Asko dishwashers concluded that consumers would be willing to pay approximately $989 for a dishwasher that was quieter than any other of these appliances on the market.Based on this price,Asko determined the margins that would have to be given to wholesalers and retailers to arrive at the $989 retail price.Asko used

Accepted Answer

A)  prestige pricing.
B)  price lining.
C)  cost-plus pricing.
D)  target pricing.
E)  customary pricing.F) B) and E)
G) A) and B)

Question 9

A method of pricing where the price the seller quotes includes all transportations costs,and is responsible for any damage that may occur because the seller retains title to the goods until delivered to the buyer,is referred to as

Accepted Answer

A)  FOB destination pricing.
B)  FOB origin pricing.
C)  geographical allowance.
D)  uniform delivered pricing.
E)  transportation allowance.F) C) and E)
G) B) and D)

Question 10

A unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?

Accepted Answer

A)  Using price differentials when price differences are given on the basis of other family businesses.
B)  Using price differentials when charging different prices to different buyers for goods of like grade or quality.
C)  Using price differentials when charging different prices on the basis of religious affiliation.
D)  Using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications.
E)  When price differences result from changing market conditions,avoiding obsolescence of seasonal merchandise,including perishables,or closing out sales.F) C) and E)
G) All of the above

Question 11

The four types of discounts are

Accepted Answer

A)  quantity,trade-in,promotional,and cash.
B)  quantity,seasonal,trade (functional) ,and cash.
C)  quantity,seasonal,promotional,and FOB.
D)  cash,trade-in,seasonal,and promotional.
E)  trade-in,promotional,geographic,and functional.F) None of the above
G) C) and E)

Question 12

Which of the following statements regarding new car purchases in the U.S.is most accurate?

Accepted Answer

A)  While men of all races pay basically the same price,women,regardless of race,pay considerably less.
B)  Seventy-nine percent of all men purchasing cars cite haggling over price as the most exciting aspect of the purchase.
C)  A fixed price policy is now the standard in the automobile industry due to violations of the Robinson-Patman Act.
D)  Female automobile salespeople rarely,if ever,offer dynamic pricing to women customers.
E)  African-Americans,women,and Hispanics pay higher prices than the average price paid for a new car.F) A) and B)
G) A) and C)

Question 13

Price discrimination is illegal under the

Accepted Answer

A)  Sherman Act.
B)  Consumer Goods Pricing Act.
C)  Robinson-Patman Act.
D)  Federal Trade Commission Act.
E)  Anti-Competitive Act.F) C) and D)
G) None of the above

Question 14

Figure 14-2 above represents the four approaches to selecting an appropriate price level."C" includes target profit and target return on sales so it represents which approach?

Accepted Answer

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

Question 15

Rather than billing clients by the hour,some lawyers and their clients agree on a fixed fee based on expected costs plus an agreed upon level of profit for the law firm.Which pricing approach are they using?

Accepted Answer

A)  target pricing
B)  cost-plus pricing
C)  customary pricing
D)  experience curve pricing
E)  bundle pricingF) A) and B)
G) B) and E)

Question 16

Rather than emphasize demand,cost,or profit factors,a price setter can stress what __________ is (are) doing.

Accepted Answer

A)  the service sector
B)  "the market" or competitors
C)  the global economy
D)  suppliers
E)  the financial marketsF) A) and D)
G) A) and C)

Question 17

Consider the dynamic 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 respectively for a new car in the $21,000 range than the typical purchaser.Who are the car buyers in "A?"

Accepted Answer

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

Question 18

If 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 within 30 days.
E)  the penalty in dollars if the bill is not paid within 10 days.F) B) and D)
G) B) and C)

Question 19

A skimming pricing policy is likely to be most effective when

Accepted Answer

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

Question 20

List four of the eight demand-oriented approaches to selecting an approximate price level and define what they are.

Accepted Answer

Demand-oriented approaches include: (1)S...

Exam 14: Arriving at the Final Price

Price discrimination is illegal under the

Correct Answer
verified

List four of the eight demand-oriented approaches to selecting an approximate price level and define what they are.

Correct Answer
verified
Demand-oriented approaches include: (1)S...
View Answer

Rather than emphasize demand,cost,or profit factors,a price setter can stress what __________ is (are) doing.

Correct Answer
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Figure 14-2 above represents the four approaches to selecting an appropriate price level."C" includes target profit and target return on sales so it represents which approach?

Correct Answer
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Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would consider a fixed price or a dynamic pricing policy,company and competitive effects,and incremental costs and revenues?

Correct Answer
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Figure 14-5 above shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI) .What is the ROI for Scenario "B"?

Correct Answer
verified

Which of the following statements regarding new car purchases in the U.S.is most accurate?

Correct Answer
verified

Marketers using a dynamic pricing policy should take care to avoid

Correct Answer
verified

The Robinson-Patman Act covers promotional allowances as well as discounts.To legally offer promotional allowances to buyers,the seller must do so on a(n) __________ to all buyers businesses distributing the seller's products.

Correct Answer
verified

A unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?

Correct Answer
verified

According to Figure 14-8 above,how much is the jobber trade discount?

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

A skimming pricing policy is likely to be most effective when

Correct Answer
verified

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

Correct Answer
verified

Rather than billing clients by the hour,some lawyers and their clients agree on a fixed fee based on expected costs plus an agreed upon level of profit for the law firm.Which pricing approach are they using?

Correct Answer
verified

The four types of discounts are

Correct Answer
verified

For most products,it is difficult to identify a specific market price for a product or product class.Still,marketing managers often have a subjective feel for the competitors' price or market price.Using this benchmark,they then may deliberately choose a strategy of

Correct Answer
verified

A method of pricing where the price the seller quotes includes all transportations costs,and is responsible for any damage that may occur because the seller retains title to the goods until delivered to the buyer,is referred to as

Correct Answer
verified

Exam 14: Arriving at the Final Price

Price discrimination is illegal under the

Correct AnswerverifiedShow Answer

List four of the eight demand-oriented approaches to selecting an approximate price level and define what they are.

Correct AnswerverifiedDemand-oriented approaches include: (1)S...View AnswerShow Answer

Rather than emphasize demand,cost,or profit factors,a price setter can stress what __________ is (are) doing.

Correct AnswerverifiedShow Answer

Figure 14-2 above represents the four approaches to selecting an appropriate price level."C" includes target profit and target return on sales so it represents which approach?

Correct AnswerverifiedShow Answer

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would consider a fixed price or a dynamic pricing policy,company and competitive effects,and incremental costs and revenues?

Correct AnswerverifiedShow Answer

Figure 14-5 above shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI) .What is the ROI for Scenario "B"?

Correct AnswerverifiedShow Answer

Which of the following statements regarding new car purchases in the U.S.is most accurate?

Correct AnswerverifiedShow Answer

Marketers using a dynamic pricing policy should take care to avoid

Correct AnswerverifiedShow Answer

The Robinson-Patman Act covers promotional allowances as well as discounts.To legally offer promotional allowances to buyers,the seller must do so on a(n) __________ to all buyers businesses distributing the seller's products.

Correct AnswerverifiedShow Answer

A unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?

Correct AnswerverifiedShow Answer

According to Figure 14-8 above,how much is the jobber trade discount?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A skimming pricing policy is likely to be most effective when

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Rather than billing clients by the hour,some lawyers and their clients agree on a fixed fee based on expected costs plus an agreed upon level of profit for the law firm.Which pricing approach are they using?

Correct AnswerverifiedShow Answer

The four types of discounts are

Correct AnswerverifiedShow Answer

For most products,it is difficult to identify a specific market price for a product or product class.Still,marketing managers often have a subjective feel for the competitors' price or market price.Using this benchmark,they then may deliberately choose a strategy of

Correct AnswerverifiedShow Answer

A method of pricing where the price the seller quotes includes all transportations costs,and is responsible for any damage that may occur because the seller retains title to the goods until delivered to the buyer,is referred to as

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Demand-oriented approaches include: (1)S...
View Answer

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