Question 1

In the case of prestige goods, the demand curve sometimes slopes upward.

Accepted Answer

A) True 
 B)False

Question 2

Movie matinees are priced lower than the evening shows; afternoon ball games are sometimes priced cheaper than the evening games, television advertising costs less when run after midnight. These are examples of what type of price discrimination?

Accepted Answer

These are examples o

Question 3

A major circumstance provoking price increases is

Accepted Answer

A)  cost inflation. 
B)  stock price versus target price. 
C)  market demand. 
D)  profitability versus target. 
E)  price versus competition. 
A)  cost inflation. 
B)  stock price versus target price. 
C)  market demand. 
D)  profitability versus target. 
E)  price versus competition.

Question 4

Many brands strive to be "affordable luxuries"-products or services characterized by high levels of perceived quality, taste, and status and with a price just high enough not to be out of consumers' reach.

Accepted Answer

A) True 
 B)False

Question 5

Given strong consumer resistance to price hikes, marketers go to great lengths to find alternative approaches that will allow them to postpone a price increase. Which of the following approaches would apply to the discontinuation of free delivery?

Accepted Answer

A)  Shrink package sizes. 
B)  Reduce or eliminate some product features. 
C)  Demand upfront payment before shipping goods. 
D)  Removing or reducing product services. 
E)  Create new economy brands. 
A)  Shrink package sizes. 
B)  Reduce or eliminate some product features. 
C)  Demand upfront payment before shipping goods. 
D)  Removing or reducing product services. 
E)  Create new economy brands.

Question 6

Purchase decisions are based on how consumers perceive prices and what they consider the current actual price and not the marketer's stated price.

Accepted Answer

A) True 
 B)False

Question 7

Your company has invested $1 000 000 in plant and equipment and wants to ensure that it receives a 20 percent ROI on the pricing of its products. This 20 percent translates into $200 000. At a $16.00 cost and a 50 000 expected sales volume, what price must your product "go out the door" at to satisfy this ROI return?

Accepted Answer

A)  $40.00 
B)  $24.00 
C)  $22.00 
D)  $20.00 
E)  $44.00 
A)  $40.00 
B)  $24.00 
C)  $22.00 
D)  $20.00 
E)  $44.00

Question 8

In some cases, price is not as important as quality and other benefits in the market offering.

Accepted Answer

A) True 
 B)False

Question 9

An increasing number of companies now base their price on the customer's ________ of their products.

Accepted Answer

A)  value proposition 
B)  everyday value pricing 
C)  perceived value 
D)  usage 
E)  EDLP pricing 
A)  value proposition 
B)  everyday value pricing 
C)  perceived value 
D)  usage 
E)  EDLP pricing

Question 10

As the lowest cost producer in the market, your firm has decided to reduce the price of your product again by 10 percent. This price decline has the effect of driving a competitor out of the market and of attracting price sensitive shoppers to your brands. This is an example of what type of pricing strategy?

Accepted Answer

A)  experience curve 
B)  activity-based 
C)  target costing 
D)  average 
E)  predatory 
A)  experience curve 
B)  activity-based 
C)  target costing 
D)  average 
E)  predatory

Question 11

In ________ pricing, the company decides how to price its products to different customers in different locations and countries.

Accepted Answer

A)  specialty 
B)  global 
C)  offset 
D)  regional 
E)  geographical 
A)  specialty 
B)  global 
C)  offset 
D)  regional 
E)  geographical

Question 12

The seller sells a plant, equipment, or technology to another country and agrees to accept as partial payment products manufactured with the supplied equipment in a(n)

Accepted Answer

A)  co-optation. 
B)  buyback arrangement. 
C)  auction. 
D)  barter. 
E)  offset. 
A)  co-optation. 
B)  buyback arrangement. 
C)  auction. 
D)  barter. 
E)  offset.

Question 13

When prices start off high and are slowly lowered over time, this is called market-skimming pricing.

Accepted Answer

A) True 
 B)False

Question 14

Effectively designing and implementing a successful pricing strategy is as much about luck as it is about understanding consumer-pricing psychology.

Accepted Answer

A) True 
 B)False

Question 15

The definition of ________ prices is: In considering an observed price, consumers often compare it to an internal memory reference price or an external frame of reference (such as a posted "regular retail price").

Accepted Answer

A)  historical 
B)  overvalued 
C)  reference 
D)  everyday low price 
E)  promotional 
A)  historical 
B)  overvalued 
C)  reference 
D)  everyday low price 
E)  promotional

Question 16

When the insurance industry recently announced a "hefty" price increase in the cost of term life insurance, sales of this type of insurance did not decrease. This is an example of what concept in understanding consumer price sensitivity?

Accepted Answer

A)  Insurance demand is unitary. 
B)  Consumers are less price sensitive to products bought infrequently. 
C)  Insurance sales reps can "really sell" their products. 
D)  Customers are most sensitive to products that are bought frequently. 
E)  Customers are less sensitive to disposable products. 
A)  Insurance demand is unitary. 
B)  Consumers are less price sensitive to products bought infrequently. 
C)  Insurance sales reps can "really sell" their products. 
D)  Customers are most sensitive to products that are bought frequently. 
E)  Customers are less sensitive to disposable products.

Question 17

Value pricing is a matter of reengineering the company's operations to become a low-cost producer.

Accepted Answer

A) True 
 B)False

Question 18

Customers are less price sensitive to low-cost items or items they buy infrequently.

Accepted Answer

A) True 
 B)False

Question 19

In target-return pricing, the firm determines the markup required and adds that amount to the fixed cost of the product.

Accepted Answer

A) True 
 B)False

Question 20

A company's costs take two forms. ________ are costs that do not vary with production or sales revenue.

Accepted Answer

A)  Fixed 
B)  Variable 
C)  Attributed 
D)  Adjusted 
E)  Determined 
A)  Fixed 
B)  Variable 
C)  Attributed 
D)  Adjusted 
E)  Determined

In the case of prestige goods, the demand curve sometimes slopes upward.

Movie matinees are priced lower than the evening shows; afternoon ball games are sometimes priced cheaper than the evening games, television advertising costs less when run after midnight. These are examples of what type of price discrimination?

A major circumstance provoking price increases is

Many brands strive to be "affordable luxuries"-products or services characterized by high levels of perceived quality, taste, and status and with a price just high enough not to be out of consumers' reach.

Given strong consumer resistance to price hikes, marketers go to great lengths to find alternative approaches that will allow them to postpone a price increase. Which of the following approaches would apply to the discontinuation of free delivery?

Purchase decisions are based on how consumers perceive prices and what they consider the current actual price and not the marketer's stated price.

In some cases, price is not as important as quality and other benefits in the market offering.

An increasing number of companies now base their price on the customer's ________ of their products.

In ________ pricing, the company decides how to price its products to different customers in different locations and countries.

The seller sells a plant, equipment, or technology to another country and agrees to accept as partial payment products manufactured with the supplied equipment in a(n)

When prices start off high and are slowly lowered over time, this is called market-skimming pricing.

Effectively designing and implementing a successful pricing strategy is as much about luck as it is about understanding consumer-pricing psychology.

The definition of ________ prices is: In considering an observed price, consumers often compare it to an internal memory reference price or an external frame of reference (such as a posted "regular retail price").

When the insurance industry recently announced a "hefty" price increase in the cost of term life insurance, sales of this type of insurance did not decrease. This is an example of what concept in understanding consumer price sensitivity?

Value pricing is a matter of reengineering the company's operations to become a low-cost producer.

Customers are less price sensitive to low-cost items or items they buy infrequently.

In target-return pricing, the firm determines the markup required and adds that amount to the fixed cost of the product.

A company's costs take two forms. ________ are costs that do not vary with production or sales revenue.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Position

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Introducing New Marketing Offerings

Tapping into Global Markets

Managing a Holistic Marketing Organization

Filters

Exam 14: Developing Pricing Strategies and Programs

In the case of prestige goods, the demand curve sometimes slopes upward.

Movie matinees are priced lower than the evening shows; afternoon ball games are sometimes priced cheaper than the evening games, television advertising costs less when run after midnight. These are examples of what type of price discrimination?

A major circumstance provoking price increases is

Many brands strive to be "affordable luxuries"-products or services characterized by high levels of perceived quality, taste, and status and with a price just high enough not to be out of consumers' reach.

Given strong consumer resistance to price hikes, marketers go to great lengths to find alternative approaches that will allow them to postpone a price increase. Which of the following approaches would apply to the discontinuation of free delivery?

Purchase decisions are based on how consumers perceive prices and what they consider the current actual price and not the marketer's stated price.

In some cases, price is not as important as quality and other benefits in the market offering.

An increasing number of companies now base their price on the customer's ________ of their products.

In ________ pricing, the company decides how to price its products to different customers in different locations and countries.

The seller sells a plant, equipment, or technology to another country and agrees to accept as partial payment products manufactured with the supplied equipment in a(n)

When prices start off high and are slowly lowered over time, this is called market-skimming pricing.

Effectively designing and implementing a successful pricing strategy is as much about luck as it is about understanding consumer-pricing psychology.

The definition of ________ prices is: In considering an observed price, consumers often compare it to an internal memory reference price or an external frame of reference (such as a posted "regular retail price").

When the insurance industry recently announced a "hefty" price increase in the cost of term life insurance, sales of this type of insurance did not decrease. This is an example of what concept in understanding consumer price sensitivity?

Value pricing is a matter of reengineering the company's operations to become a low-cost producer.

Customers are less price sensitive to low-cost items or items they buy infrequently.

In target-return pricing, the firm determines the markup required and adds that amount to the fixed cost of the product.

A company's costs take two forms. ________ are costs that do not vary with production or sales revenue.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Position

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Introducing New Marketing Offerings

Tapping into Global Markets

Managing a Holistic Marketing Organization

Filters