Question 1

Each of the following economic factors can have a strong impact on a firm's pricing strategy EXCEPT ________.

Accepted Answer

A) an economic boom 
B) the reseller's reaction to price changes 
C) an economic recession 
D) inflation 
E) interest rates 
A) an economic boom 
B) the reseller's reaction to price changes 
C) an economic recession 
D) inflation 
E) interest rates

Question 2

It is important to remember that '________ value' is not the same as '________ price'.

Accepted Answer

The answer of It is important to remember that '________...

Question 3

Low cost carrier,Tiger Airlines,controlled some 5 per cent of the market when the Civil Aviation Authority ordered its suspension amid safety concerns.Although executives at QANTAS and Virgin Australia felt certain that they would pick up extra demand as a consequence of Tiger's closure,most customers who would normally have travelled with Tiger elected to forgo travel entirely rather than fly with one of the premium airlines.The segment's reluctance to switch airlines should be interpreted as an indication of its price sensitivity.

Accepted Answer

A) True 
 B)False

Question 4

In the printer and cartridge market,key challengers are unable to undercut the very low prices offered by the market leader,Hewlett Packard (HP).However,HP charges relatively high prices for replacement cartridges ($50-$80 each).In an effort to gain ground in this highly competitive market,Canon,using the insight that customers resented the high prices of printer cartridges,saw an opportunity to compete on prices for ink-jet cartridges and came up with a very fair offer of $12 per cartridge.Both Hewlett Packard and Canon face which type of pricing situation?

Accepted Answer

A) captive-product pricing 
B) optional market pricing 
C) penetration pricing 
D) by-product pricing 
E) price bundling 
A) captive-product pricing 
B) optional market pricing 
C) penetration pricing 
D) by-product pricing 
E) price bundling

Question 5

The most important pieces of legislation affecting pricing is the ________,which prohibits price fixing,resale price maintenance and particular forms of price discrimination,as well as predatory pricing by monopolistically positioned competitors and deceptive pricing.

Accepted Answer

A) Trade Practices Act 
B) AANA Code of Ethics 
C) The Manufacturer's Pricing Covenant 
D) Competition and Consumer Act 
E) None of the above. 
A) Trade Practices Act 
B) AANA Code of Ethics 
C) The Manufacturer's Pricing Covenant 
D) Competition and Consumer Act 
E) None of the above.

Question 6

With ________ pricing,price is set to match consumers' perceptions of product value.

Accepted Answer

A) variable cost 
B) cost-plus 
C) cost-based 
D) value-based 
E) everyday low 
A) variable cost 
B) cost-plus 
C) cost-based 
D) value-based 
E) everyday low

Question 7

When a car manufacturer provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs,it is granting a(n)________.

Accepted Answer

A) trade discount 
B) functional discount 
C) allowance 
D) promotional allowance 
E) trade credit 
A) trade discount 
B) functional discount 
C) allowance 
D) promotional allowance 
E) trade credit

Question 8

Hotline Long Distance Service uses captive-product pricing for its phone call charges.Because this is a service,the price is broken into a fixed rate plus a per-call ________.

Accepted Answer

A) fixed rate usage 
B) variable usage rate 
C) standard usage rate 
D) market usage rate 
E) fixed fee 
A) fixed rate usage 
B) variable usage rate 
C) standard usage rate 
D) market usage rate 
E) fixed fee

Question 9

Which of the following presents the strongest reason that mark-up pricing generally does NOT make sense?

Accepted Answer

A) Sellers earn a fair return on their investment. 
B) By tying the price to cost,sellers simplify pricing. 
C) When all firms in the industry use this pricing method,prices tend to be similar. 
D) This method ignores demand. 
E) With a standard mark-up,consumers know when they are being overcharged. 
A) Sellers earn a fair return on their investment. 
B) By tying the price to cost,sellers simplify pricing. 
C) When all firms in the industry use this pricing method,prices tend to be similar. 
D) This method ignores demand. 
E) With a standard mark-up,consumers know when they are being overcharged.

Question 10

Adding a standard mark-up to the cost of the product is known as cost-________ pricing.

Accepted Answer

The answer of Adding a standard mark-up to the cost...

Question 11

A company sets not a single price,but rather a ________ that covers different items in its line that change over time as products move through their life-cycles and environmental conditions change.

Accepted Answer

A) pricing by-product 
B) pricing structure 
C) pricing loop 
D) pricing cycle 
E) pricing bundle 
A) pricing by-product 
B) pricing structure 
C) pricing loop 
D) pricing cycle 
E) pricing bundle

Question 12

________ is the amount of money charged for a product or service.

Accepted Answer

A) Experience curve 
B) Demand curve 
C) Price 
D) Wage 
E) Salary 
A) Experience curve 
B) Demand curve 
C) Price 
D) Wage 
E) Salary

Question 13

In industrial markets,salespeople outrank top management in determining the sales price of products,as well as pricing objectives and policies.

Accepted Answer

A) True 
 B)False

Question 14

It is most typical for producers who use captive-product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product.

Accepted Answer

A) low;low mark-ups 
B) high;low mark-ups 
C) low;high mark-ups 
D) high;high mark-ups 
E) moderately;moderate mark-ups 
A) low;low mark-ups 
B) high;low mark-ups 
C) low;high mark-ups 
D) high;high mark-ups 
E) moderately;moderate mark-ups

Question 15

Market-skimming pricing would likely be most effective in selling ________.

Accepted Answer

A) any convenience item 
B) an electronic device for which research and development must be recouped 
C) shampoo and bath soap 
D) anything easily copied by competitors 
E) most items at EDLP retailers such as Big W,Target and K-Mart 
A) any convenience item 
B) an electronic device for which research and development must be recouped 
C) shampoo and bath soap 
D) anything easily copied by competitors 
E) most items at EDLP retailers such as Big W,Target and K-Mart

Question 16

Product costs set a(n)________ to a product's price.

Accepted Answer

A) demand curve 
B) experience curve 
C) floor 
D) ceiling 
E) breakeven cost 
A) demand curve 
B) experience curve 
C) floor 
D) ceiling 
E) breakeven cost

Question 17

Consumer perceptions of the product's value set the ________ for prices.

Accepted Answer

A) demand curve 
B) floor 
C) ceiling 
D) variable cost 
E) image 
A) demand curve 
B) floor 
C) ceiling 
D) variable cost 
E) image

Question 18

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

Accepted Answer

A) value-based pricing 
B) going-rate pricing 
C) breakeven pricing 
D) good-value pricing 
E) A and C 
A) value-based pricing 
B) going-rate pricing 
C) breakeven pricing 
D) good-value pricing 
E) A and C

Question 19

Under ________,the market consists of many buyers and sellers trading in a uniform commodity such as wheat,copper or financial securities.

Accepted Answer

A) pure competition 
B) monopolistic competition 
C) oligopolistic competition 
D) a pure monopoly 
E) anti-trust agreements 
A) pure competition 
B) monopolistic competition 
C) oligopolistic competition 
D) a pure monopoly 
E) anti-trust agreements

Question 20

The hardware retailer,Bunnings,is positioned as a low-cost retailer.It regularly advertises that it 'won't be beaten on price' and gives customers the undertaking that 'lf you happen to find a cheaper price on a stocked item we'll beat it by 10%'.This is an example of which type of pricing?

Accepted Answer

A) penetration pricing 
B) predatory pricing 
C) signpost pricing 
D) loss leadering 
E) price matching guarantees 
A) penetration pricing 
B) predatory pricing 
C) signpost pricing 
D) loss leadering 
E) price matching guarantees

Each of the following economic factors can have a strong impact on a firm's pricing strategy EXCEPT ________.

It is important to remember that ' value' is not the same as ' price'.

The most important pieces of legislation affecting pricing is the ________,which prohibits price fixing,resale price maintenance and particular forms of price discrimination,as well as predatory pricing by monopolistically positioned competitors and deceptive pricing.

With ________ pricing,price is set to match consumers' perceptions of product value.

When a car manufacturer provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs,it is granting a(n)________.

Hotline Long Distance Service uses captive-product pricing for its phone call charges.Because this is a service,the price is broken into a fixed rate plus a per-call ________.

Which of the following presents the strongest reason that mark-up pricing generally does NOT make sense?

Adding a standard mark-up to the cost of the product is known as cost-________ pricing.

A company sets not a single price,but rather a ________ that covers different items in its line that change over time as products move through their life-cycles and environmental conditions change.

________ is the amount of money charged for a product or service.

In industrial markets,salespeople outrank top management in determining the sales price of products,as well as pricing objectives and policies.

It is most typical for producers who use captive-product pricing to set the price of the main product and set on the supplies necessary to use the product.

Market-skimming pricing would likely be most effective in selling ________.

Product costs set a(n)________ to a product's price.

Consumer perceptions of the product's value set the ________ for prices.

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

Under ________,the market consists of many buyers and sellers trading in a uniform commodity such as wheat,copper or financial securities.

The hardware retailer,Bunnings,is positioned as a low-cost retailer.It regularly advertises that it 'won't be beaten on price' and gives customers the undertaking that 'lf you happen to find a cheaper price on a stocked item we'll beat it by 10%'.This is an example of which type of pricing?

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analysing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Consumer Buyer Behaviour

Business Markets and Business Buyer Behaviour

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services and Brands: Building Customer Value

Pricing Strategies: Understanding and Capturing Customer Value

Additional Pricing Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing Communications Strategy

Filters

Exam 9: Developing New Products and Managing the Product

Each of the following economic factors can have a strong impact on a firm's pricing strategy EXCEPT ________.

It is important to remember that '________ value' is not the same as '________ price'.

The most important pieces of legislation affecting pricing is the ________,which prohibits price fixing,resale price maintenance and particular forms of price discrimination,as well as predatory pricing by monopolistically positioned competitors and deceptive pricing.

With ________ pricing,price is set to match consumers' perceptions of product value.

When a car manufacturer provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs,it is granting a(n)________.

Hotline Long Distance Service uses captive-product pricing for its phone call charges.Because this is a service,the price is broken into a fixed rate plus a per-call ________.

Which of the following presents the strongest reason that mark-up pricing generally does NOT make sense?

Adding a standard mark-up to the cost of the product is known as cost-________ pricing.

A company sets not a single price,but rather a ________ that covers different items in its line that change over time as products move through their life-cycles and environmental conditions change.

________ is the amount of money charged for a product or service.

In industrial markets,salespeople outrank top management in determining the sales price of products,as well as pricing objectives and policies.

It is most typical for producers who use captive-product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product.

Market-skimming pricing would likely be most effective in selling ________.

Product costs set a(n)________ to a product's price.

Consumer perceptions of the product's value set the ________ for prices.

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

Under ________,the market consists of many buyers and sellers trading in a uniform commodity such as wheat,copper or financial securities.

The hardware retailer,Bunnings,is positioned as a low-cost retailer.It regularly advertises that it 'won't be beaten on price' and gives customers the undertaking that 'lf you happen to find a cheaper price on a stocked item we'll beat it by 10%'.This is an example of which type of pricing?

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analysing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Consumer Buyer Behaviour

Business Markets and Business Buyer Behaviour

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services and Brands: Building Customer Value

Pricing Strategies: Understanding and Capturing Customer Value

Additional Pricing Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing Communications Strategy

Filters

It is important to remember that ' value' is not the same as ' price'.

It is most typical for producers who use captive-product pricing to set the price of the main product and set on the supplies necessary to use the product.