Question 1

Setting different prices for products and services depending on individual buyers and purchase situations is referred to as

Accepted Answer

A)   price lining.
B)   a flexible-price policy.
C)   customary pricing.
D)   price fixing.
E)   discretionary pricing.F) D) and E)
G) C) and D)

Question 2

acronym "FOB" stands for __________.

Accepted Answer

A)   freight on board
B)   free on board
C)   freight of buyer
D)   forward onto buyer
E)   freight owner bonusF) B) and E)
G) A) and B)

Question 3

Which cost-oriented pricing method holds that a product's unit costs predictably decline by 10 to 30 percent each time its production volume doubles?

Accepted Answer

A)   experience curve pricing
B)   cost-plus percentage-of-cost pricing
C)   cost-plus fixed-fee pricing
D)   standard markup pricing
E)   derived demand pricingF) A) and B)
G) A) and C)

Question 4

method of pricing where the price the seller quotes includes all transportations costs and the seller retains title to the goods until delivered to the buyer,thereby assuming responsibility for any damage that may occur,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) None of the above

Question 5

Figure 14-1
-Figure 14-1 above represents the six steps in the price-setting process.Which letter represents the step where a firm would consider discounts,allowances,and geographical adjustments to arrive at the final price?

Accepted Answer

A)   "B"
B)   "C"
C)   "D"
D)   "E"
E)   "F"F) C) and E)
G) None of the above

Question 6

Individuals can choose to purchase Microsoft stand-alone software packages,such as the Home and Student versions of Word,Excel,and PowerPoint,for $119.99 each.However,they may choose to purchase the Office Home and Student 2010 suite,which has all of these applications in the same package,for a price of $149.99.Microsoft is using a __________ pricing strategy.

Accepted Answer

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

Question 7

Creative Quilts Studio sells hundreds of colors and types of fabric and thread.To price its inventory,the owners add 50 percent to the cost of each bolt of fabric and every spool of thread.What is this pricing approach called?

Accepted Answer

A)   target return-on-sales pricing
B)   flexible pricing
C)   cost-plus pricing
D)   standard markup pricing
E)   customary pricingF) C) and D)
G) B) and D)

Question 8

custom tailor wishes to use target profit pricing to establish a price for a custom-designed business suit.Assume variable cost is $200 per suit,fixed cost is $44,000,and the target profit is $50,000 based on a volume of 50 suits.What price should be charged for a typical custom suit?

Accepted Answer

A)   $520
B)   $1,040
C)   $1,880
D)   $2,080
E)   $10,000F) B) and D)
G) A) and E)

Question 9

Figure 14-7
-According to Figure 14-7 above,how much is the retailer trade discount?

Accepted Answer

A)   $3.15
B)   $7.00
C)   $30.00
D)   $63.00
E)   $70.00F) A) and C)
G) B) and E)

Question 10

fashion buyer for Neiman Marcus is in Italy to view the new collections and to order for the coming season.In Milan,she negotiates a good price for a quantity of shoes in a range of sizes and styles,FOB factory.This means that

Accepted Answer

A)   the factory selects the mode of transportation, pays the freight charges, and is responsible for any damage because the seller retains title to the goods until they are delivered to Neiman Marcus.
B)   the factory selects the mode of transportation but Neiman Marcus pays freight charges and is responsible for any damage while the shoes are in transit because title passes to the firm at the point of loading.
C)   Neiman Marcus and the factory split the freight costs.
D)   the factory pays the freight cost to a designated port (airport or seaport)  in the U.S. while Neiman Marcus pays the freight from that port to its final destination within the U.S.
E)   the factory passes the title when the goods are loaded but will pay all shipping costs.F) A) and B)
G) A) and D)

Question 11

the terms of the trade discount are listed as "20/10/5," the number "20" represents

Accepted Answer

A)   20 percent of the suggested retail price that is available to the retailer to cover costs and provide a profit.
B)   20 percent of the suggested wholesale price that is available to the wholesaler to cover costs and provide a profit.
C)   20 percent of the suggested retail price that is available to the jobber to cover costs and provide a profit.
D)   20 percent of the manufacturer's suggested retail price that is available to the ultimate consumer.
E)   20 percent of the suggested retail price is the profit that is available to the manufacturer.F) None of the above
G) A) and B)

Question 12

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

Accepted Answer

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

Question 13

Price discrimination refers to

Accepted Answer

A)   the practice of charging different prices to different buyers for goods of like grade and quality.
B)   an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.
C)   the practice of charging a very low price for a product with the intent of driving competitors out of business.
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) D) and E)
G) A) and E)

Question 14

is experience curve pricing and how does it relate to marketing strategies?

Accepted Answer

Experience curve pricing is based on the...

Question 15

Vizio's long-term goal for the next 20 to 30 years is to

Accepted Answer

A)   have at least one of its HDTV products in every single home in the United States.
B)   have its HDTVs exported from the U.S. to China.
C)   be the next Sony.
D)   be the next Apple.
E)   create the first completely wireless HDTV entertainments system.F) A) and E)
G) A) and C)

Question 16

glass blowing studio makes fine pieces of art glass.It has decided on a retail list price of $2,000 for one of its vases.They sell only to wholesalers and retailers who receive 50/10 terms.How much will the studio receive from selling this vase?

Accepted Answer

A)   $2,000
B)   $1,000
C)   $900
D)   $800
E)   $100F) C) and E)
G) A) and D)

Question 17

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 one-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 flexible pricing to female customers.
E)   African Americans, women, and Hispanics pay higher than the average price for a new car.F) C) and D)
G) A) and D)

Question 18

Using __________,many retailers deliberately sell products below their normal prices (and sometimes below cost) to attract attention and additional store traffic.

Accepted Answer

A)   customary pricing
B)   below-market pricing
C)   prestige pricing
D)   penetration pricing
E)   loss-leader pricingF) B) and C)
G) B) and E)

Question 19

acronym "EDLP" stands for __________.

Accepted Answer

A)   everyday lo-hi pricing.
B)   extended discounts for loss-leader products.
C)   everyday low pricing.
D)   either free delivery or lower prices.
E)   expired discounts in lieu of lower pricing.F) B) and C)
G) A) and E)

Question 20

price for Nintendo's Wii video game console was likely insufficient to cover its fixed and variable costs.However,the price of its video games was set high enough to cover the video game console loss and deliver a handsome profit for the entire Nintendo product line.This example illustrates Nintendo's use of

Accepted Answer

A)   bundle pricing.
B)   product-line pricing.
C)   price lining.
D)   customary pricing.
E)   loss-leader pricing.F) B) and C)
G) A) and D)

Exam 14: Arriving at the Final Price

the terms of the trade discount are listed as "20/10/5," the number "20" represents

Correct Answer
verified

custom tailor wishes to use target profit pricing to establish a price for a custom-designed business suit.Assume variable cost is $200 per suit,fixed cost is $44,000,and the target profit is $50,000 based on a volume of 50 suits.What price should be charged for a typical custom suit?

Correct Answer
verified

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

Correct Answer
verified

Creative Quilts Studio sells hundreds of colors and types of fabric and thread.To price its inventory,the owners add 50 percent to the cost of each bolt of fabric and every spool of thread.What is this pricing approach called?

Correct Answer
verified

Figure 14-7 -According to Figure 14-7 above,how much is the retailer trade discount?

Correct Answer
verified

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

Correct Answer
verified

glass blowing studio makes fine pieces of art glass.It has decided on a retail list price of $2,000 for one of its vases.They sell only to wholesalers and retailers who receive 50/10 terms.How much will the studio receive from selling this vase?

Correct Answer
verified

Correct Answer
verified

fashion buyer for Neiman Marcus is in Italy to view the new collections and to order for the coming season.In Milan,she negotiates a good price for a quantity of shoes in a range of sizes and styles,FOB factory.This means that

Correct Answer
verified

Using __________,many retailers deliberately sell products below their normal prices (and sometimes below cost) to attract attention and additional store traffic.

Correct Answer
verified

Figure 14-1 -Figure 14-1 above represents the six steps in the price-setting process.Which letter represents the step where a firm would consider discounts,allowances,and geographical adjustments to arrive at the final price?

Correct Answer
verified

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

Correct Answer
verified

Price discrimination refers to

Correct Answer
verified

Which cost-oriented pricing method holds that a product's unit costs predictably decline by 10 to 30 percent each time its production volume doubles?

Correct Answer
verified

acronym "EDLP" stands for __________.

Correct Answer
verified

Correct Answer
verified

Vizio's long-term goal for the next 20 to 30 years is to

Correct Answer
verified

acronym "FOB" stands for __________.

Correct Answer
verified

is experience curve pricing and how does it relate to marketing strategies?

Correct Answer
verified
Experience curve pricing is based on the...
View Answer

Setting different prices for products and services depending on individual buyers and purchase situations is referred to as

Correct Answer
verified

Exam 14: Arriving at the Final Price

the terms of the trade discount are listed as "20/10/5," the number "20" represents

Correct AnswerverifiedShow Answer

custom tailor wishes to use target profit pricing to establish a price for a custom-designed business suit.Assume variable cost is $200 per suit,fixed cost is $44,000,and the target profit is $50,000 based on a volume of 50 suits.What price should be charged for a typical custom suit?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Creative Quilts Studio sells hundreds of colors and types of fabric and thread.To price its inventory,the owners add 50 percent to the cost of each bolt of fabric and every spool of thread.What is this pricing approach called?

Correct AnswerverifiedShow Answer

Figure 14-7 -According to Figure 14-7 above,how much is the retailer trade discount?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

glass blowing studio makes fine pieces of art glass.It has decided on a retail list price of $2,000 for one of its vases.They sell only to wholesalers and retailers who receive 50/10 terms.How much will the studio receive from selling this vase?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

fashion buyer for Neiman Marcus is in Italy to view the new collections and to order for the coming season.In Milan,she negotiates a good price for a quantity of shoes in a range of sizes and styles,FOB factory.This means that

Correct AnswerverifiedShow Answer

Using __________,many retailers deliberately sell products below their normal prices (and sometimes below cost) to attract attention and additional store traffic.

Correct AnswerverifiedShow Answer

Figure 14-1 -Figure 14-1 above represents the six steps in the price-setting process.Which letter represents the step where a firm would consider discounts,allowances,and geographical adjustments to arrive at the final price?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Price discrimination refers to

Correct AnswerverifiedShow Answer

Which cost-oriented pricing method holds that a product's unit costs predictably decline by 10 to 30 percent each time its production volume doubles?

Correct AnswerverifiedShow Answer

acronym "EDLP" stands for __________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Vizio's long-term goal for the next 20 to 30 years is to

Correct AnswerverifiedShow Answer

acronym "FOB" stands for __________.

Correct AnswerverifiedShow Answer

is experience curve pricing and how does it relate to marketing strategies?

Correct AnswerverifiedExperience curve pricing is based on the...View AnswerShow Answer

Setting different prices for products and services depending on individual buyers and purchase situations is referred to as

Correct AnswerverifiedShow Answer

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Experience curve pricing is based on the...
View Answer

Correct Answer
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