Question 1

After offering a promotional allowance,the price of a product returns to its regular price level.When this happens,the retail store's gross margin on that product __________ on those items that were bought with the allowance but not sold during the special price promotion.

Accepted Answer

A)   decreases substantially
B)   increases substantially
C)   remains the same
D)   fluctuates wildly
E)   vanishesF) A) and B)
G) A) and C)

Question 2

establishing product line pricing,the lowest-priced item is typically positioned as

Accepted Answer

A)   the youngest product item in the line.
B)   the smallest-selling product item in the line.
C)   the lost-cost item in the line in terms of quality and features.
D)   the profit leader for the rest of the product line.
E)   the traffic builder designed to capture the attention of hesitant or first-time buyers.F) A) and E)
G) B) and C)

Question 3

Adding a fixed percentage to the cost of all items in a specific product class is referred to as

Accepted Answer

A)   target profit pricing.
B)   standard markup pricing.
C)   target return-on-investment pricing.
D)   customary pricing.
E)   everyday low pricing.F) C) and E)
G) B) and C)

Question 4

Which of the following statements about penetration pricing is most accurate?

Accepted Answer

A)   Penetration pricing is a profit-oriented approach to pricing.
B)   Penetration pricing is a cost-oriented pricing method.
C)   Penetration pricing encourages competitors to enter a market.
D)   Penetration pricing is more effective in a marketplace with price-sensitive consumers.
E)   Penetration pricing usually precedes a skimming pricing.F) A) and B)
G) A) and C)

Question 5

Consumers buy water and soda from vending machines.Traditionally,the price of each of these products is about $1.25.If a marketer charges a significantly higher price for such products dispensed by vending machines,sales are likely to decline.In order to avoid declines in sales,marketers tend to be very consistent in the prices they charge for vending machine products.This is an example of marketers employing a __________ strategy.

Accepted Answer

A)   below-market pricing
B)   skimming pricing
C)   penetration pricing
D)   loss-leader pricing
E)   customary pricingF) All of the above
G) D) and E)

Question 6

Setting prices a few dollars or cents under an even number is referred to as __________.

Accepted Answer

A)   odd-even pricing
B)   prestige pricing
C)   price lining
D)   above-, at-, or below-market pricing
E)   every day fair pricingF) A) and B)
G) C) and D)

Question 7

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

Question 8

Geographical Pricing Map C
-pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1) price fixing; (2) price discrimination; (3) predatory pricing; (4) geographical pricing; and (5) __________.

Accepted Answer

A)   price discounting
B)   deceptive pricing
C)   lateral price fixing
D)   regional rollbacks
E)   delayed payment penaltiesF) B) and D)
G) None of the above

Question 9

Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

Accepted Answer

A)   the marketing activities they are expected to perform in the future.
B)   the frequency of the order.
C)   when orders are placed during the year.
D)   the length of the relationship with the manufacturer.
E)   the size of the order.F) All of the above
G) A) and B)

Question 10

most commonly used pricing method for business products is __________.

Accepted Answer

A)   target return on investment
B)   customary
C)   standard markup
D)   target profit
E)   cost-plus pricingF) C) and E)
G) None of the above

Question 11

Setting one price for all buyers of a product or service is referred to as __________.

Accepted Answer

A)   customary pricing
B)   one-price policy
C)   flexible-price policy
D)   standard markup pricing
E)   uniform pricingF) A) and B)
G) A) and C)

Question 12

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,is referred to as

Accepted Answer

A)   loss-leader pricing.
B)   bundle pricing.
C)   magnet pricing.
D)   predatory pricing.
E)   below-market pricing.F) All of the above
G) A) and D)

Question 13

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 different prices during different times of the day or days of the week to reflect variations in demand 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 time.F) B) and E)
G) B) and D)

Question 14

new car dealer can reduce the list price of a new Ford F-150 pickup truck by offering you a __________ of $1,000 for your 1998 Nissan Altima.

Accepted Answer

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

Question 15

common forms of pricing include: bait and switch,bargains conditional on other purchases,comparable value comparisons,comparisons with suggested prices,and former price comparisons.What do all these practices have in common? They are all

Accepted Answer

A)   most effective in the growth stage of the product life cycle.
B)   popular techniques preferred by online businesses.
C)   illegal and often difficult to prosecute.
D)   most effective in business-to-business marketing.
E)   effective pricing practices that professional marketers use.F) A) and D)
G) None of the above

Question 16

3M decided the retail price for the Greptile Grip golf glove would be $16.95 and then worked backward through markups taken by retailers and wholesalers to determine what price it can charge wholesalers for the product,the firm would most likely be practicing a __________ strategy.

Accepted Answer

A)   price lining
B)   penetration pricing
C)   predatory pricing
D)   target pricing
E)   cost plus percentage-of-cost pricingF) D) and E)
G) A) and B)

Question 17

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

Question 18

Yield management 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) B) and D)
G) A) and C)

Question 19

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 doesn't raise the retail prices for the storage racks to those paid by the marketer's non-discount customers,Johnson's supply of racks may 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) All of the above
G) C) and E)

Question 20

Red Bull price premium = [(38% ÷ 33%)  - 1] = 0.1515 × 100 = 15.2%
Monster price premium = [(18% ÷ 19%)  - 1] = -0.0526 × 100 = (5.3%) 
Rockstar price premium = [(7% ÷ 8%)  - 1] = -0.1250 × 100 = (12.5%) 
Other brands price premium = [(37% ÷ 40%)  - 1] = -0.0750 × 100 = (7.5%) 
-Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Red Bull in 2009?

Accepted Answer

A)   12.1%
B)   0%
C)   -5.0%
D)   -5.6%
E)   -11.1%F) A) and B)
G) A) and C)

Exam 14: Arriving at the Final Price

most commonly used pricing method for business products is __________.

Correct Answer
verified

Setting prices a few dollars or cents under an even number is referred to as __________.

Correct Answer
verified

3M decided the retail price for the Greptile Grip golf glove would be $16.95 and then worked backward through markups taken by retailers and wholesalers to determine what price it can charge wholesalers for the product,the firm would most likely be practicing a __________ strategy.

Correct Answer
verified

Yield management is considered to be a __________ approach to pricing.

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

establishing product line pricing,the lowest-priced item is typically positioned as

Correct Answer
verified

After offering a promotional allowance,the price of a product returns to its regular price level.When this happens,the retail store's gross margin on that product __________ on those items that were bought with the allowance but not sold during the special price promotion.

Correct Answer
verified

Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

Correct Answer
verified

Setting one price for all buyers of a product or service is referred to as __________.

Correct Answer
verified

Which of the following statements about penetration pricing is most accurate?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

new car dealer can reduce the list price of a new Ford F-150 pickup truck by offering you a __________ of $1,000 for your 1998 Nissan Altima.

Correct Answer
verified

Yield management pricing refers to

Correct Answer
verified

Correct Answer
verified

Geographical Pricing Map C -pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1) price fixing; (2) price discrimination; (3) predatory pricing; (4) geographical pricing; and (5) __________.

Correct Answer
verified

Adding a fixed percentage to the cost of all items in a specific product class is referred to as

Correct Answer
verified

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

Correct Answer
verified

common forms of pricing include: bait and switch,bargains conditional on other purchases,comparable value comparisons,comparisons with suggested prices,and former price comparisons.What do all these practices have in common? They are all

Correct Answer
verified

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,is referred to as

Correct Answer
verified

Exam 14: Arriving at the Final Price

most commonly used pricing method for business products is __________.

Correct AnswerverifiedShow Answer

Setting prices a few dollars or cents under an even number is referred to as __________.

Correct AnswerverifiedShow Answer

3M decided the retail price for the Greptile Grip golf glove would be $16.95 and then worked backward through markups taken by retailers and wholesalers to determine what price it can charge wholesalers for the product,the firm would most likely be practicing a __________ strategy.

Correct AnswerverifiedShow Answer

Yield management is considered to be a __________ approach to pricing.

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

establishing product line pricing,the lowest-priced item is typically positioned as

Correct AnswerverifiedShow Answer

After offering a promotional allowance,the price of a product returns to its regular price level.When this happens,the retail store's gross margin on that product __________ on those items that were bought with the allowance but not sold during the special price promotion.

Correct AnswerverifiedShow Answer

Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and

Correct AnswerverifiedShow Answer

Setting one price for all buyers of a product or service is referred to as __________.

Correct AnswerverifiedShow Answer

Which of the following statements about penetration pricing is most accurate?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

new car dealer can reduce the list price of a new Ford F-150 pickup truck by offering you a __________ of $1,000 for your 1998 Nissan Altima.

Correct AnswerverifiedShow Answer

Yield management pricing refers to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Geographical Pricing Map C -pricing practices are closely scrutinized because of potential unethical or illegal actions.They include: (1) price fixing; (2) price discrimination; (3) predatory pricing; (4) geographical pricing; and (5) __________.

Correct AnswerverifiedShow Answer

Adding a fixed percentage to the cost of all items in a specific product class is referred to as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

common forms of pricing include: bait and switch,bargains conditional on other purchases,comparable value comparisons,comparisons with suggested prices,and former price comparisons.What do all these practices have in common? They are all

Correct AnswerverifiedShow Answer

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,is referred to as

Correct AnswerverifiedShow Answer

Correct Answer
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