Question 1

Penetration pricing is the opposite of skimming pricing.

Accepted Answer

A) True 
 B)False

Question 2

What are the advantages and disadvantages of using demand-based pricing?

Accepted Answer

Demand-based pricing assures a firm that

Question 3

When a company charges the same rate to ship a product regardless of location, it is using which form of pricing?

Accepted Answer

A)  freight absorption 
B)  F.O.B. factory 
C)  F.O.B. origin 
D)  uniform delivered 
E)  F.O.B. delivered 
A)  freight absorption 
B)  F.O.B. factory 
C)  F.O.B. origin 
D)  uniform delivered 
E)  F.O.B. delivered

Question 4

When Top-Flite introduced its Strata golf balls with a new dimple design and more solid core for better flight with metal clubs, the price was three times that of regular balls. Pro shops still could not keep them in stock. What is the pricing strategy implemented by Top-Flite, and why did the company choose this strategy?

Accepted Answer

Top-Flite implemented the skim

Question 5

Explain the pricing strategy being implemented when a retail store places the store's brand items next to the national brand items when the national brand items have a slightly higher price than the store's item. Why would a retailer do this?

Accepted Answer

The store is relying on the assimilation

Question 6

When a snow blower shop offers a price reduction to customers who buy during the spring and summer, the shop is giving a(n) ________ discount.

Accepted Answer

A)  functional 
B)  seasonal 
C)  annual 
D)  trade 
E)  allowance 
A)  functional 
B)  seasonal 
C)  annual 
D)  trade 
E)  allowance

Question 7

A retailer that uses the list price for products but runs frequent promotions that heavily discount some products is using which type of pricing strategy?

Accepted Answer

A)  price skimming 
B)  trial pricing 
C)  penetration pricing 
D)  peak load pricing 
E)  high/low pricing 
A)  price skimming 
B)  trial pricing 
C)  penetration pricing 
D)  peak load pricing 
E)  high/low pricing

Question 8

Which of the following is a pricing strategy that charges different prices to different buyers for the same product based on the size of the order or the buyer's geographic location?

Accepted Answer

A)  reserve pricing 
B)  peak load pricing 
C)  Internet price discrimination 
D)  freight absorption pricing 
E)  reverse auction 
A)  reserve pricing 
B)  peak load pricing 
C)  Internet price discrimination 
D)  freight absorption pricing 
E)  reverse auction

Question 9

________ is the assignment of value, or the amount a consumer must give to receive a product.

Accepted Answer

A)  Profit 
B)  Exchange 
C)  Price 
D)  Demand 
E)  Yield 
A)  Profit 
B)  Exchange 
C)  Price 
D)  Demand 
E)  Yield

Question 10

A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.

Accepted Answer

A)  a skimming pricing strategy 
B)  trial pricing 
C)  price segmentation 
D)  penetration pricing 
E)  prestige pricing 
A)  a skimming pricing strategy 
B)  trial pricing 
C)  price segmentation 
D)  penetration pricing 
E)  prestige pricing

Question 11

Cost-based pricing considers factors such as the nature of the target market, demand, competition, and the product life cycle.

Accepted Answer

A) True 
 B)False

Question 12

Enforcing laws against ________ is complicated because such practices are similar to the legal practice of "trading up."

Accepted Answer

A)  price bundling 
B)  captive pricing 
C)  bait-and-switch tactics 
D)  prestige pricing 
E)  placebo effect pricing 
A)  price bundling 
B)  captive pricing 
C)  bait-and-switch tactics 
D)  prestige pricing 
E)  placebo effect pricing

Question 13

Which of the following is a reason that a marketer would choose a penetration pricing strategy?

Accepted Answer

A)  to ensure the company has the ability to increase prices once demand decreases 
B)  to focus on the rapid achievement of profit objectives 
C)  to appeal to different consumer segments with different levels of price sensitivity 
D)  to create markets for highly technical products 
E)  to discourage competition from entering the market 
A)  to ensure the company has the ability to increase prices once demand decreases 
B)  to focus on the rapid achievement of profit objectives 
C)  to appeal to different consumer segments with different levels of price sensitivity 
D)  to create markets for highly technical products 
E)  to discourage competition from entering the market

Question 14

Which of the following is a measure of customers' sensitivity to changes in price?

Accepted Answer

A)  liquidity ratio 
B)  break-even point 
C)  price elasticity of demand 
D)  marginal analysis 
E)  basing-point 
A)  liquidity ratio 
B)  break-even point 
C)  price elasticity of demand 
D)  marginal analysis 
E)  basing-point

Question 15

Virtual currencies that use cryptography for security are also called ________.

Accepted Answer

A)  blockchains 
B)  barters 
C)  digital currencies 
D)  freemiums 
E)  loss-leaders 
A)  blockchains 
B)  barters 
C)  digital currencies 
D)  freemiums 
E)  loss-leaders

Penetration pricing is the opposite of skimming pricing.

What are the advantages and disadvantages of using demand-based pricing?

When a company charges the same rate to ship a product regardless of location, it is using which form of pricing?

Explain the pricing strategy being implemented when a retail store places the store's brand items next to the national brand items when the national brand items have a slightly higher price than the store's item. Why would a retailer do this?

When a snow blower shop offers a price reduction to customers who buy during the spring and summer, the shop is giving a(n) ________ discount.

A retailer that uses the list price for products but runs frequent promotions that heavily discount some products is using which type of pricing strategy?

Which of the following is a pricing strategy that charges different prices to different buyers for the same product based on the size of the order or the buyer's geographic location?

________ is the assignment of value, or the amount a consumer must give to receive a product.

A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.

Cost-based pricing considers factors such as the nature of the target market, demand, competition, and the product life cycle.

Enforcing laws against ________ is complicated because such practices are similar to the legal practice of "trading up."

Which of the following is a reason that a marketer would choose a penetration pricing strategy?

Which of the following is a measure of customers' sensitivity to changes in price?

Virtual currencies that use cryptography for security are also called ________.

Welcome to the World of Marketing: Create and Deliver Value

Global, Ethical, and Sustainable Marketing

Strategic Market Planning

Market Research

Marketing Analytics: Welcome to the Era of Big Data

Understand Consumer and Business Markets

Segmentation, Target Marketing, and Positioning

Product I: Innovation and New Product Development

Product Ii: Product Strategy, Branding, and Product Management

Deliver the Goods: Determine the Distribution Strategy

Deliver the Customer Experience: Goods and Services Via Bricks and Clicks

Promotion I: Advertising: One to Many Marketing Communications

Promotion II: Social Media Marketing and Other Communication Tools

Filters

Exam 10: Price: What Is the Value Proposition Worth

Penetration pricing is the opposite of skimming pricing.

What are the advantages and disadvantages of using demand-based pricing?

When a company charges the same rate to ship a product regardless of location, it is using which form of pricing?

Explain the pricing strategy being implemented when a retail store places the store's brand items next to the national brand items when the national brand items have a slightly higher price than the store's item. Why would a retailer do this?

When a snow blower shop offers a price reduction to customers who buy during the spring and summer, the shop is giving a(n) ________ discount.

A retailer that uses the list price for products but runs frequent promotions that heavily discount some products is using which type of pricing strategy?

Which of the following is a pricing strategy that charges different prices to different buyers for the same product based on the size of the order or the buyer's geographic location?

________ is the assignment of value, or the amount a consumer must give to receive a product.

A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.

Cost-based pricing considers factors such as the nature of the target market, demand, competition, and the product life cycle.

Enforcing laws against ________ is complicated because such practices are similar to the legal practice of "trading up."

Which of the following is a reason that a marketer would choose a penetration pricing strategy?

Which of the following is a measure of customers' sensitivity to changes in price?

Virtual currencies that use cryptography for security are also called ________.

Welcome to the World of Marketing: Create and Deliver Value

Global, Ethical, and Sustainable Marketing

Strategic Market Planning

Market Research

Marketing Analytics: Welcome to the Era of Big Data

Understand Consumer and Business Markets

Segmentation, Target Marketing, and Positioning

Product I: Innovation and New Product Development

Product Ii: Product Strategy, Branding, and Product Management

Deliver the Goods: Determine the Distribution Strategy

Deliver the Customer Experience: Goods and Services Via Bricks and Clicks

Promotion I: Advertising: One to Many Marketing Communications

Promotion II: Social Media Marketing and Other Communication Tools

Filters