Question 1

For market penetration pricing to work,the product or service must be perceived as breaking new ground in some way.

Accepted Answer

A) True 
 B)False

Question 2

Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model.

Accepted Answer

A)  innovators; early adopters 
B)  early adopters; the early majority 
C)  the early majority; the late majority 
D)  the late majority; laggards 
E)  laggards; innovators 
A)  innovators; early adopters 
B)  early adopters; the early majority 
C)  the early majority; the late majority 
D)  the late majority; laggards 
E)  laggards; innovators

Question 3

What is one of the drawbacks of using a price skimming strategy?

Accepted Answer

A)  It is difficult to lower prices on an introductory product. 
B)  Price skimming allows competitors to easily enter the market. 
C)  Firms must consider the high costs associated with producing a small volume of product. 
D)  Price skimming does not work well with new-to-the-market, innovative products. 
E)  Price skimming is often challenged as being illegal. 
A)  It is difficult to lower prices on an introductory product. 
B)  Price skimming allows competitors to easily enter the market. 
C)  Firms must consider the high costs associated with producing a small volume of product. 
D)  Price skimming does not work well with new-to-the-market, innovative products. 
E)  Price skimming is often challenged as being illegal.

Question 4

It is important to Joanne to get value for her money,but she does not want to spend time comparison shopping.Joanne will likely respond to _______ pricing,but not to _______ pricing.

Accepted Answer

A)  high/low; EDLP 
B)  premium; high/low 
C)  high/low; premium 
D)  price skimming; high/low 
E)  EDLP; high/low 
A)  high/low; EDLP 
B)  premium; high/low 
C)  high/low; premium 
D)  price skimming; high/low 
E)  EDLP; high/low

Question 5

The Clayton Act and the Robinson-Patman Act forbid certain types of

Accepted Answer

A)  price discrimination. 
B)  bait-and-switch pricing. 
C)  predatory pricing. 
D)  everyday low pricing strategies. 
E)  loss-leader pricing. 
A)  price discrimination. 
B)  bait-and-switch pricing. 
C)  predatory pricing. 
D)  everyday low pricing strategies. 
E)  loss-leader pricing.

Question 6

Everyday low pricing (EDLP)provides value to consumers by

Accepted Answer

A)  continually offering items on sale. 
B)  minimizing the number of options a consumer can evaluate. 
C)  offering noncumulative quantity discounts. 
D)  reducing their search costs. 
E)  creative use of reference pricing. 
A)  continually offering items on sale. 
B)  minimizing the number of options a consumer can evaluate. 
C)  offering noncumulative quantity discounts. 
D)  reducing their search costs. 
E)  creative use of reference pricing.

Question 7

When marketers establish a price floor and a price ceiling for an entire line of similar products and then set price points in between for differences in quality among the products,they are using a _______ pricing approach.

Accepted Answer

A)  loss leader 
B)  zone 
C)  price bundling 
D)  price skimming 
E)  price lining 
A)  loss leader 
B)  zone 
C)  price bundling 
D)  price skimming 
E)  price lining

Question 8

A pricing strategy is

Accepted Answer

A)  a long-term approach to setting prices in a companywide integrated effort. 
B)  the use of one-time seasonal discounts to reduce inventory. 
C)  the use of slotting allowances to gain access to distribution channels. 
D)  a short-term approach to setting prices. 
E)  associated with competitive threats in the marketplace. 
A)  a long-term approach to setting prices in a companywide integrated effort. 
B)  the use of one-time seasonal discounts to reduce inventory. 
C)  the use of slotting allowances to gain access to distribution channels. 
D)  a short-term approach to setting prices. 
E)  associated with competitive threats in the marketplace.

Question 9

The Robinson-Patman Act does not apply to end consumers,at which point many forms of price discrimination occur.

Accepted Answer

A) True 
 B)False

Question 10

Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price

Accepted Answer

A)  penetration. 
B)  bundling. 
C)  fixing. 
D)  referencing. 
E)  skimming. 
A)  penetration. 
B)  bundling. 
C)  fixing. 
D)  referencing. 
E)  skimming.

Question 11

Proving that a company has engaged in the deceptive bait-and-switch practice is easy.

Accepted Answer

A) True 
 B)False

Question 12

In determining the price for his company's new photo printer,Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market.Raymond is using _______ pricing.

Accepted Answer

A)  improvement value 
B)  EDLP 
C)  reference-based 
D)  cost of ownership 
E)  premium 
A)  improvement value 
B)  EDLP 
C)  reference-based 
D)  cost of ownership 
E)  premium

Question 13

In determining the price for his company's new pocket digital camera,Matt determines what consumers consider the regular or original price for similar cameras available in the market.Matt is assessing the influence of __________ on pricing strategy.

Accepted Answer

A)  improvement value 
B)  odd-even prices 
C)  everyday low pricing 
D)  reference prices 
E)  cost of ownership 
A)  improvement value 
B)  odd-even prices 
C)  everyday low pricing 
D)  reference prices 
E)  cost of ownership

Question 14

Why would a price skimming strategy probably not work for a "me-too" product,something very similar to a new-to-the-market product?

Accepted Answer

For price skimming to work,the

Question 15

A noncumulative B2B quantity discount is

Accepted Answer

A)  used to encourage consumers to purchase larger quantities each time they buy. 
B)  based only on the amount purchased in a single order. 
C)  considered illegal under the Robinson-Patman Act. 
D)  used primarily to attract new retail customers. 
E)  offered only to one-time purchasers. 
A)  used to encourage consumers to purchase larger quantities each time they buy. 
B)  based only on the amount purchased in a single order. 
C)  considered illegal under the Robinson-Patman Act. 
D)  used primarily to attract new retail customers. 
E)  offered only to one-time purchasers.

Question 16

One reason marketers of new,innovative products often start out with a price skimming strategy rather than a market penetration strategy is that

Accepted Answer

A)  few consumers understand a penetration strategy. 
B)  a price skimming strategy lowers the value for consumers. 
C)  a price skimming strategy targets all product adopters equally. 
D)  it is easier to lower prices than to raise them. 
E)  price skimming is legal while price penetration is not. 
A)  few consumers understand a penetration strategy. 
B)  a price skimming strategy lowers the value for consumers. 
C)  a price skimming strategy targets all product adopters equally. 
D)  it is easier to lower prices than to raise them. 
E)  price skimming is legal while price penetration is not.

Question 17

What is the advantage to a business of price bundling? What is the advantage to a consumer?

Accepted Answer

A business may find this a useful tool t

Question 18

Cheryl wants to quickly establish a dominant market share for her new line of ergonomic pens.To do this,she will likely use a market penetration pricing strategy.

Accepted Answer

A) True 
 B)False

Question 19

In determining the price of his company's new small-business accounting software,Richard is assessing how much better his company's software is as compared to alternative products available in the market.Richard is using _______ pricing.

Accepted Answer

A)  cost-based 
B)  improvement value 
C)  reference-based 
D)  cost of ownership 
E)  market-based 
A)  cost-based 
B)  improvement value 
C)  reference-based 
D)  cost of ownership 
E)  market-based

Question 20

__________ price fixing occurs when competitors collude to control prices,and __________ price fixing occurs within a marketing channel to control prices passed on to consumers.

Accepted Answer

A)  Industry; supply chain 
B)  General; specific 
C)  Widespread; integrated 
D)  Strategic; tactical 
E)  Horizontal; vertical 
A)  Industry; supply chain 
B)  General; specific 
C)  Widespread; integrated 
D)  Strategic; tactical 
E)  Horizontal; vertical

For market penetration pricing to work,the product or service must be perceived as breaking new ground in some way.

Price skimming focuses on selling products to and in the consumer adoption process model.

What is one of the drawbacks of using a price skimming strategy?

It is important to Joanne to get value for her money,but she does not want to spend time comparison shopping.Joanne will likely respond to _ pricing,but not to _ pricing.

The Clayton Act and the Robinson-Patman Act forbid certain types of

Everyday low pricing (EDLP)provides value to consumers by

When marketers establish a price floor and a price ceiling for an entire line of similar products and then set price points in between for differences in quality among the products,they are using a _______ pricing approach.

A pricing strategy is

The Robinson-Patman Act does not apply to end consumers,at which point many forms of price discrimination occur.

Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price

Proving that a company has engaged in the deceptive bait-and-switch practice is easy.

In determining the price for his company's new photo printer,Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market.Raymond is using _______ pricing.

In determining the price for his company's new pocket digital camera,Matt determines what consumers consider the regular or original price for similar cameras available in the market.Matt is assessing the influence of __________ on pricing strategy.

Why would a price skimming strategy probably not work for a "me-too" product,something very similar to a new-to-the-market product?

A noncumulative B2B quantity discount is

One reason marketers of new,innovative products often start out with a price skimming strategy rather than a market penetration strategy is that

What is the advantage to a business of price bundling? What is the advantage to a consumer?

Cheryl wants to quickly establish a dominant market share for her new line of ergonomic pens.To do this,she will likely use a market penetration pricing strategy.

In determining the price of his company's new small-business accounting software,Richard is assessing how much better his company's software is as compared to alternative products available in the market.Richard is using _______ pricing.

price fixing occurs when competitors collude to control prices,and price fixing occurs within a marketing channel to control prices passed on to consumers.

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Conscious Marketing,corporate Social Responsibility,and Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation,targeting,and Positioning

Marketing Research

Product,branding,and Packaging Decisions

Developing New Products

Services: the Intangible Product

Pricing Concepts for Establishing Value

Supply Chain and Channel Management

Retailing and Omnichannel Marketing

Integrated Marketing Communications

Advertising,public Relations,and Sales Promotions

Personal Selling and Sales Management

Filters

Exam 15: Supply Chain and Channel Management

For market penetration pricing to work,the product or service must be perceived as breaking new ground in some way.

Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model.

What is one of the drawbacks of using a price skimming strategy?

It is important to Joanne to get value for her money,but she does not want to spend time comparison shopping.Joanne will likely respond to _______ pricing,but not to _______ pricing.

The Clayton Act and the Robinson-Patman Act forbid certain types of

Everyday low pricing (EDLP)provides value to consumers by

When marketers establish a price floor and a price ceiling for an entire line of similar products and then set price points in between for differences in quality among the products,they are using a _______ pricing approach.

A pricing strategy is

The Robinson-Patman Act does not apply to end consumers,at which point many forms of price discrimination occur.

Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price

Proving that a company has engaged in the deceptive bait-and-switch practice is easy.

In determining the price for his company's new photo printer,Raymond is assessing the total cost of owning his printer as compared to alternative products available in the market.Raymond is using _______ pricing.

In determining the price for his company's new pocket digital camera,Matt determines what consumers consider the regular or original price for similar cameras available in the market.Matt is assessing the influence of __________ on pricing strategy.

Why would a price skimming strategy probably not work for a "me-too" product,something very similar to a new-to-the-market product?

A noncumulative B2B quantity discount is

One reason marketers of new,innovative products often start out with a price skimming strategy rather than a market penetration strategy is that

What is the advantage to a business of price bundling? What is the advantage to a consumer?

Cheryl wants to quickly establish a dominant market share for her new line of ergonomic pens.To do this,she will likely use a market penetration pricing strategy.

In determining the price of his company's new small-business accounting software,Richard is assessing how much better his company's software is as compared to alternative products available in the market.Richard is using _______ pricing.

__________ price fixing occurs when competitors collude to control prices,and __________ price fixing occurs within a marketing channel to control prices passed on to consumers.

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Conscious Marketing,corporate Social Responsibility,and Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation,targeting,and Positioning

Marketing Research

Product,branding,and Packaging Decisions

Developing New Products

Services: the Intangible Product

Pricing Concepts for Establishing Value

Supply Chain and Channel Management

Retailing and Omnichannel Marketing

Integrated Marketing Communications

Advertising,public Relations,and Sales Promotions

Personal Selling and Sales Management

Filters

Price skimming focuses on selling products to and in the consumer adoption process model.

It is important to Joanne to get value for her money,but she does not want to spend time comparison shopping.Joanne will likely respond to _ pricing,but not to _ pricing.

price fixing occurs when competitors collude to control prices,and price fixing occurs within a marketing channel to control prices passed on to consumers.