Question 1

Maintaining or increasing market share

Accepted Answer

A)  can be achieved even if industry sales are flat or decreasing. 
B)  is an infrequently used pricing objective in most industries. 
C)  depends on the overall growth of the total industry. 
D)  is a profit-related objective based on price. 
E)  is directly tied to leading an industry in product quality. 
A)  can be achieved even if industry sales are flat or decreasing. 
B)  is an infrequently used pricing objective in most industries. 
C)  depends on the overall growth of the total industry. 
D)  is a profit-related objective based on price. 
E)  is directly tied to leading an industry in product quality.

Question 2

The decision of Macy's to use even prices such as $60 for a Ralph Lauren Polo is an application of ____, where ____ prices are often used to _____.

Accepted Answer

A)  odd-even pricing; even; give a product an upscale or exclusive image 
B)  odd-even pricing; odd; show customers products are priced based on tradition 
C)  prestige; premium; give a product an upscale or exclusive image 
D)  prestige; even; make it easier for consumers to compare 
E)  odd-even; even; facilitate comparison to competitors' prices 
A)  odd-even pricing; even; give a product an upscale or exclusive image 
B)  odd-even pricing; odd; show customers products are priced based on tradition 
C)  prestige; premium; give a product an upscale or exclusive image 
D)  prestige; even; make it easier for consumers to compare 
E)  odd-even; even; facilitate comparison to competitors' prices

Question 3

Target released a promotional campaign with the tagline, "Expect more. Pay less." Which of the following pricing strategies is Target most likely using?

Accepted Answer

A)  Psychological pricing 
B)  Promotional pricing 
C)  Product-line pricing 
D)  Differential pricing 
E)  New-product pricing 
A)  Psychological pricing 
B)  Promotional pricing 
C)  Product-line pricing 
D)  Differential pricing 
E)  New-product pricing

Question 4

Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called

Accepted Answer

A)  competition-based pricing. 
B)  reference pricing. 
C)  comparison discounting. 
D)  captive pricing. 
E)  psychological pricing. 
A)  competition-based pricing. 
B)  reference pricing. 
C)  comparison discounting. 
D)  captive pricing. 
E)  psychological pricing.

Question 5

Which of the following is a requirement for setting pricing objectives?

Accepted Answer

A)  The objectives should be short-term oriented. 
B)  There should be only one pricing objective. 
C)  An evaluation of competitors' prices should be made. 
D)  The cost structure should be identified. 
E)  The objectives should be explicitly stated. 
A)  The objectives should be short-term oriented. 
B)  There should be only one pricing objective. 
C)  An evaluation of competitors' prices should be made. 
D)  The cost structure should be identified. 
E)  The objectives should be explicitly stated.

Question 6

Pricing strategies and methods

Accepted Answer

A)  help direct and structure the selection of a final price. 
B)  are the last decisions made for a new product. 
C)  are the same for all of a company's products. 
D)  are the most important decisions made for a product. 
E)  require limited planning on the part of management. 
A)  help direct and structure the selection of a final price. 
B)  are the last decisions made for a new product. 
C)  are the same for all of a company's products. 
D)  are the most important decisions made for a product. 
E)  require limited planning on the part of management.

Question 7

A firm that considers costs and revenue secondary to competitors' prices when setting its own prices is using a competition-based pricing strategy.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following characteristics is unique to pricing more so than other variables of the marketing mix?

Accepted Answer

A)  Challenging 
B)  Truthfulness 
C)  Flexibility 
D)  Consistency 
E)  Clarity 
A)  Challenging 
B)  Truthfulness 
C)  Flexibility 
D)  Consistency 
E)  Clarity

Question 9

Markup pricing is not used often by marketers because establishing a percentage markup greatly increases the complexity of the decision-making process.

Accepted Answer

A) True 
 B)False

Question 10

In some cases, prices are assigned to goods on the basis of nothing more than custom.

Accepted Answer

A) True 
 B)False

Question 11

High-end luxury products that will be priced high do not need to evaluate their competitor's prices.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following pricing objectives sets prices to recover cash as quickly as possible?

Accepted Answer

A)  Market share 
B)  Profit 
C)  Cash flow 
D)  Return on investment 
E)  Product quality 
A)  Market share 
B)  Profit 
C)  Cash flow 
D)  Return on investment 
E)  Product quality

Maintaining or increasing market share

The decision of Macy's to use even prices such as $60 for a Ralph Lauren Polo is an application of , where prices are often used to _.

Target released a promotional campaign with the tagline, "Expect more. Pay less." Which of the following pricing strategies is Target most likely using?

Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called

Which of the following is a requirement for setting pricing objectives?

Pricing strategies and methods

A firm that considers costs and revenue secondary to competitors' prices when setting its own prices is using a competition-based pricing strategy.

Which of the following characteristics is unique to pricing more so than other variables of the marketing mix?

Markup pricing is not used often by marketers because establishing a percentage markup greatly increases the complexity of the decision-making process.

In some cases, prices are assigned to goods on the basis of nothing more than custom.

High-end luxury products that will be priced high do not need to evaluate their competitor's prices.

Which of the following pricing objectives sets prices to recover cash as quickly as possible?

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets, Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding, and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Filters

Exam 20: Setting Prices

Maintaining or increasing market share

The decision of Macy's to use even prices such as $60 for a Ralph Lauren Polo is an application of ____, where ____ prices are often used to _____.

Target released a promotional campaign with the tagline, "Expect more. Pay less." Which of the following pricing strategies is Target most likely using?

Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called

Which of the following is a requirement for setting pricing objectives?

Pricing strategies and methods

A firm that considers costs and revenue secondary to competitors' prices when setting its own prices is using a competition-based pricing strategy.

Which of the following characteristics is unique to pricing more so than other variables of the marketing mix?

Markup pricing is not used often by marketers because establishing a percentage markup greatly increases the complexity of the decision-making process.

In some cases, prices are assigned to goods on the basis of nothing more than custom.

High-end luxury products that will be priced high do not need to evaluate their competitor's prices.

Which of the following pricing objectives sets prices to recover cash as quickly as possible?

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets, Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding, and Packaging

Developing and Managing Products

Services Marketing

Marketing Channels and Supply Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Filters

The decision of Macy's to use even prices such as $60 for a Ralph Lauren Polo is an application of , where prices are often used to _.