Question 1

According to garment makers, the demands of large customers are nearly wiping out profits for all but the very large suppliers.

Accepted Answer

A) True 
 B)False  True

Question 2

For businesses, consumer penalties are part of doing business in a highly competitive marketplace.

Accepted Answer

A) True 
 B)False  True

Question 3

Inelastic demand is a situation in which:

Accepted Answer

A) an increase or a decrease in price does not significantly affect the demand for a product. 
B) prices are adjusted over time to maximize a company's revenues. 
C) demand is created for new products by aggressive brand awareness campaigns. 
D) a pricing objective maintains existing prices or meets the competition's prices. 
A) an increase or a decrease in price does not significantly affect the demand for a product. 
B) prices are adjusted over time to maximize a company's revenues. 
C) demand is created for new products by aggressive brand awareness campaigns. 
D) a pricing objective maintains existing prices or meets the competition's prices. A

Question 4

_____ refers to selling to two or more different buyers, within a reasonably short time, commodities (not services) of like grade and quality at different prices where the result would be to substantially lessen competition.

Accepted Answer

A) Price discrimination 
B) Price fixing 
C) Bait pricing 
D) Penetration pricing 
A) Price discrimination 
B) Price fixing 
C) Bait pricing 
D) Penetration pricing

Question 5

In _____, the seller pays all or part of the actual shipment charges and does not pass them on to the buyer.

Accepted Answer

A) FOB origin pricing 
B) freight absorption pricing 
C) uniform delivered pricing 
D) basing-point pricing 
A) FOB origin pricing 
B) freight absorption pricing 
C) uniform delivered pricing 
D) basing-point pricing

Question 6

During the off-season, the Rues Hotel offers a 25 percent reduction on its rooms to attract guests. Given this information, which of the following is illustrated in this scenario?

Accepted Answer

A) The power of yield management systems 
B) The advantage of markup pricing 
C) The relationship between price and quality 
D) The use of price as a promotional tool 
A) The power of yield management systems 
B) The advantage of markup pricing 
C) The relationship between price and quality 
D) The use of price as a promotional tool

Question 7

Explain how the relationship between the price and quality of a product affects a purchase decision.

Accepted Answer

Answers will vary. When a purchase decis

Question 8

At a local supermarket, Linda saw a box of plant fertilizer that was retailed at $25 but was marked down to $20.99. Given this information, $20.99 is the _____.

Accepted Answer

A) dividend 
B) price 
C) margin 
D) profit 
A) dividend 
B) price 
C) margin 
D) profit

Question 9

Digital pricing has better equipped brick-and-mortar stores to compete with their online alternatives.

Accepted Answer

A) True 
 B)False

Question 10

Yield management systems are used:

Accepted Answer

A) to eliminate the problem of simultaneous production and consumption from services. 
B) only in service industries. 
C) to establish price equilibrium. 
D) to make profitable use of the unused capacity of perishable goods. 
A) to eliminate the problem of simultaneous production and consumption from services. 
B) only in service industries. 
C) to establish price equilibrium. 
D) to make profitable use of the unused capacity of perishable goods.

Question 11

Discuss how shopping bots help consumers with their purchase decisions.

Accepted Answer

Answers will vary. The Internet, extrane

Question 12

An effective distribution network can overcome minor flaws in the marketing mix.

Accepted Answer

A) True 
 B)False

Question 13

Discuss with examples the factors that affect elasticity of demand.

Accepted Answer

Answers will vary. Several factors affec

Question 14

_____ is a method of determining what sales volume must be reached before total revenue equals total costs.

Accepted Answer

A) Break-even analysis 
B) Markup pricing 
C) Opportunity analysis 
D) Fixed-cost pricing 
A) Break-even analysis 
B) Markup pricing 
C) Opportunity analysis 
D) Fixed-cost pricing

Question 15

99-Center Inc. is a retail store where all the merchandise is priced 99 cents. This retailer uses a _____.

Accepted Answer

A) single-price tactic 
B) flexible pricing tactic 
C) price lining tactic 
D) price bundling tactic 
A) single-price tactic 
B) flexible pricing tactic 
C) price lining tactic 
D) price bundling tactic

Question 16

Consumers are more likely to perceive the value of a product to be less than its cost if:

Accepted Answer

A) the product's price is set too high in their minds. 
B) the product's manufacturer gains very little profit from the product. 
C) the product has an inelastic demand. 
D) the product's demand and supply attain the state of price equilibrium. 
A) the product's price is set too high in their minds. 
B) the product's manufacturer gains very little profit from the product. 
C) the product has an inelastic demand. 
D) the product's demand and supply attain the state of price equilibrium.

Question 17

Identify a true statement about status quo pricing.

Accepted Answer

A) It leads to optimal pricing of a product. 
B) It requires serious planning and is difficult to implement. 
C) It gives great importance to the demand for and the costs of a product. 
D) It can lead to a pricing disaster. 
A) It leads to optimal pricing of a product. 
B) It requires serious planning and is difficult to implement. 
C) It gives great importance to the demand for and the costs of a product. 
D) It can lead to a pricing disaster.

Question 18

For convenience, pricing objectives can be divided into three categories, which are:

Accepted Answer

A) refundable, competitive, and attainable. 
B) perceived, actual, and situational. 
C) differentiated, niche, and undifferentiated. 
D) profit oriented, sales oriented, and status quo. 
A) refundable, competitive, and attainable. 
B) perceived, actual, and situational. 
C) differentiated, niche, and undifferentiated. 
D) profit oriented, sales oriented, and status quo.

Question 19

Gwenta Corp., a soft drink manufacturing company, pays a certain amount quarterly to its distributors who display the soft drink's latest ad on their distribution trucks. This quarterly payment is referred to as a noncumulative quantity discount.

Accepted Answer

A) True 
 B)False

Question 20

Predatory pricing is illegal under the Robinson-Patman Act of 1936.

Accepted Answer

A) True 
 B)False

According to garment makers, the demands of large customers are nearly wiping out profits for all but the very large suppliers.

For businesses, consumer penalties are part of doing business in a highly competitive marketplace.

Inelastic demand is a situation in which:

_____ refers to selling to two or more different buyers, within a reasonably short time, commodities (not services) of like grade and quality at different prices where the result would be to substantially lessen competition.

In _____, the seller pays all or part of the actual shipment charges and does not pass them on to the buyer.

During the off-season, the Rues Hotel offers a 25 percent reduction on its rooms to attract guests. Given this information, which of the following is illustrated in this scenario?

Explain how the relationship between the price and quality of a product affects a purchase decision.

At a local supermarket, Linda saw a box of plant fertilizer that was retailed at $25 but was marked down to $20.99. Given this information, $20.99 is the _____.

Digital pricing has better equipped brick-and-mortar stores to compete with their online alternatives.

Yield management systems are used:

Discuss how shopping bots help consumers with their purchase decisions.

An effective distribution network can overcome minor flaws in the marketing mix.

Discuss with examples the factors that affect elasticity of demand.

_____ is a method of determining what sales volume must be reached before total revenue equals total costs.

99-Center Inc. is a retail store where all the merchandise is priced 99 cents. This retailer uses a _____.

Consumers are more likely to perceive the value of a product to be less than its cost if:

Identify a true statement about status quo pricing.

For convenience, pricing objectives can be divided into three categories, which are:

Gwenta Corp., a soft drink manufacturing company, pays a certain amount quarterly to its distributors who display the soft drink's latest ad on their distribution trucks. This quarterly payment is referred to as a noncumulative quantity discount.

Predatory pricing is illegal under the Robinson-Patman Act of 1936.

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Retailing

Marketing Communications

Advertising, Public Relations, and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Filters

Exam 19: Pricing Concepts

According to garment makers, the demands of large customers are nearly wiping out profits for all but the very large suppliers.

For businesses, consumer penalties are part of doing business in a highly competitive marketplace.

Inelastic demand is a situation in which:

_____ refers to selling to two or more different buyers, within a reasonably short time, commodities (not services) of like grade and quality at different prices where the result would be to substantially lessen competition.

In _____, the seller pays all or part of the actual shipment charges and does not pass them on to the buyer.

During the off-season, the Rues Hotel offers a 25 percent reduction on its rooms to attract guests. Given this information, which of the following is illustrated in this scenario?

Explain how the relationship between the price and quality of a product affects a purchase decision.

At a local supermarket, Linda saw a box of plant fertilizer that was retailed at $25 but was marked down to $20.99. Given this information, $20.99 is the _____.

Digital pricing has better equipped brick-and-mortar stores to compete with their online alternatives.

Yield management systems are used:

Discuss how shopping bots help consumers with their purchase decisions.

An effective distribution network can overcome minor flaws in the marketing mix.

Discuss with examples the factors that affect elasticity of demand.

_____ is a method of determining what sales volume must be reached before total revenue equals total costs.

99-Center Inc. is a retail store where all the merchandise is priced 99 cents. This retailer uses a _____.

Consumers are more likely to perceive the value of a product to be less than its cost if:

Identify a true statement about status quo pricing.

For convenience, pricing objectives can be divided into three categories, which are:

Gwenta Corp., a soft drink manufacturing company, pays a certain amount quarterly to its distributors who display the soft drink's latest ad on their distribution trucks. This quarterly payment is referred to as a noncumulative quantity discount.

Predatory pricing is illegal under the Robinson-Patman Act of 1936.

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Supply Chain Management and Marketing Channels

Retailing

Marketing Communications

Advertising, Public Relations, and Sales Promotion

Personal Selling and Sales Management

Social Media and Marketing

Filters