Question 1

Critics of resale price maintenance contend it:

Accepted Answer

A)  leads to inflated prices and excessive profits. 
B)  hastens the payment of invoices. 
C)  causes retailers to have to offer deep price discounts. 
D)  increases fixed costs. 
E)  creates channel disharmony. 
A)  leads to inflated prices and excessive profits. 
B)  hastens the payment of invoices. 
C)  causes retailers to have to offer deep price discounts. 
D)  increases fixed costs. 
E)  creates channel disharmony.

Question 2

On May 15, Riverwalk Café received a $265 invoice for restaurant supplies. The invoice offered the following terms, "3/14, n/30." If the owner pays the invoice by May 25, she should make her check out for:

Accepted Answer

A)  $185.50 
B)  $227.90 
C)  $238.50 
D)  $257.05 
E)  $265.00 
A)  $185.50 
B)  $227.90 
C)  $238.50 
D)  $257.05 
E)  $265.00

Question 3

Orvis, the catalog retailer, sells men's dress slacks for $49, $59, and $69. This method, which is used to simplify buying decisions, is called _____ _____.

Accepted Answer

The answer of Orvis, the catalog retailer, sells men's dress...

Question 4

A _____ discount is a deduction granted to buyers for paying their bills within a specified period of time.

Accepted Answer

A)  seasonal 
B)  cash 
C)  cumulative quantity 
D)  noncumulative quantity 
E)  trade 
A)  seasonal 
B)  cash 
C)  cumulative quantity 
D)  noncumulative quantity 
E)  trade

Question 5

The manufacturer of a line of Barbie collectibles wants to use _____ to protect the Barbie image and the value of its collectibles. It also states its primary reasoning for using this strategy is to provide its middlemen with an ample profit margin.

Accepted Answer

A)  base-price implementation 
B)  resale price maintenance 
C)  price lining 
D)  regulated pricing 
E)  FOB factory pricing 
A)  base-price implementation 
B)  resale price maintenance 
C)  price lining 
D)  regulated pricing 
E)  FOB factory pricing

Question 6

Which of the following is a direct form of price competition?

Accepted Answer

A)  The Hormel Food Corporation lengthens its channel of distribution for its nonperishable products. 
B)  The Kroger supermarket in Franklin prices Stouffer's Lean Cuisine 15 percent lower than Winn-Dixie, its leading competitor in that community. 
C)  Harper Paperbacks pays 50 percent of the advertising cost for a bookstore that features its book Far from Home. 
D)  Death on Demand bookstore introduces a book search service for its customers. 
E)  The manufacturer of the 1928 brand of gift accessories introduces a line of toiletries. 
A)  The Hormel Food Corporation lengthens its channel of distribution for its nonperishable products. 
B)  The Kroger supermarket in Franklin prices Stouffer's Lean Cuisine 15 percent lower than Winn-Dixie, its leading competitor in that community. 
C)  Harper Paperbacks pays 50 percent of the advertising cost for a bookstore that features its book Far from Home. 
D)  Death on Demand bookstore introduces a book search service for its customers. 
E)  The manufacturer of the 1928 brand of gift accessories introduces a line of toiletries.

Question 7

According to the text, the two primary forms of nonprice competition are product differentiation and market augmentation.

Accepted Answer

A) True 
 B)False

Question 8

Imagine the manufacturer of Claude Montana perfume quotes a retail price of $75 on one bottle of the French designer's signature perfume and offers trade discounts of 30 percent to retailers and 15 percent to wholesalers. The perfume wholesaler would receive _____ per bottle in revenue.

Accepted Answer

A)  $11.25 
B)  $22.50 
C)  $33.75 
D)  $52.50 
E)  $63.75 
A)  $11.25 
B)  $22.50 
C)  $33.75 
D)  $52.50 
E)  $63.75

Question 9

Due to a number of layoffs in the technology industry, there are many technology experts who are unemployed. Some saw an opportunity to become a third-party suppliers of tech support, especially after they became aware that even handling a small problem for a major company can cost $20. One of the new services is called GeekHelp. When the service was introduced to the market, the entrepreneur who started the company announced it has the cheapest per-minute rate of any of the tech support companies. Another one called Ask Dr. Tech charges a fee of $299 per year to provide tech support for a small business. Because some consumers cannot explain what is wrong with their computers beyond the fact it will not work, GeekXpress will make house calls to organization members who pay a fee of $35 per month. When it added house calls to its services, it did not raise its prices.
-GeekXpress uses _____ pricing.

Accepted Answer

A)  fair-trade 
B)  value 
C)  psychological 
D)  penetration 
E)  cost-plus 
A)  fair-trade 
B)  value 
C)  psychological 
D)  penetration 
E)  cost-plus

Question 10

_____ pricing is a variation of the one-price strategy. This strategy allows the purchaser to pay a stipulated single price and then consume as much or as little as desired.

Accepted Answer

A)  Postage-stamp 
B)  Flat-rate 
C)  Uniform delivered 
D)  Leader 
E)  Prestige 
A)  Postage-stamp 
B)  Flat-rate 
C)  Uniform delivered 
D)  Leader 
E)  Prestige

Question 11

Whenever Appletree Doors and Windows ships a set of French doors to New York or Hawaii, it requires the buyer to pay all shipping costs because it uses _____ _____ pricing.

Accepted Answer

The answer of Whenever Appletree Doors and Windows ships a...

Question 12

The two types of rebates are coupon and mail-in.

Accepted Answer

A) True 
 B)False

Question 13

Manufacturers offer _____, deductions from a seller's list price, to encourage customers to buy in larger amounts or to make most of their purchases from that seller.

Accepted Answer

A)  functional discounts 
B)  quantity discounts 
C)  seasonal discounts 
D)  promotional allowances 
E)  trade discounts 
A)  functional discounts 
B)  quantity discounts 
C)  seasonal discounts 
D)  promotional allowances 
E)  trade discounts

Question 14

For which of the following products would a manufacturer be LEAST likely to offer a seasonal discount?

Accepted Answer

A)  Christmas cards 
B)  ski vacations 
C)  dictionaries 
D)  spring-blooming bulbs 
E)  flea and tick sprays 
A)  Christmas cards 
B)  ski vacations 
C)  dictionaries 
D)  spring-blooming bulbs 
E)  flea and tick sprays

Question 15

Due to a number of layoffs in the technology industry, there are many technology experts who are unemployed. Some saw an opportunity to become a third-party suppliers of tech support, especially after they became aware that even handling a small problem for a major company can cost $20. One of the new services is called GeekHelp. When the service was introduced to the market, the entrepreneur who started the company announced it has the cheapest per-minute rate of any of the tech support companies. Another one called Ask Dr. Tech charges a fee of $299 per year to provide tech support for a small business. Because some consumers cannot explain what is wrong with their computers beyond the fact it will not work, GeekXpress will make house calls to organization members who pay a fee of $35 per month. When it added house calls to its services, it did not raise its prices.
-Ask Dr. Tech uses a(n) _____ strategy when charging businesses for its services.

Accepted Answer

A)  price optimization 
B)  flat-rate pricing 
C)  variable-price 
D)  penetration pricing 
E)  leader pricing 
A)  price optimization 
B)  flat-rate pricing 
C)  variable-price 
D)  penetration pricing 
E)  leader pricing

Question 16

If Willie's Car Detailers charged $75.00 per car, no matter what condition the car was in when the owner brought it in, then Andrew is using an extreme form of one-price strategy.

Accepted Answer

A) True 
 B)False

Question 17

As the financial officer for a company that manufactures lawn furniture from recycled materials, Mike knows the company needs to get its buyers to pay their bills more quickly. What kind of discount would be most likely to encourage faster bill payment?

Accepted Answer

A)  a promotional allowance 
B)  a trade discount 
C)  a quantity discount 
D)  a functional discount 
E)  a cash discount 
A)  a promotional allowance 
B)  a trade discount 
C)  a quantity discount 
D)  a functional discount 
E)  a cash discount

Question 18

When a seller attempts to shift the consumer demand curve for its product to the right, it uses product differentiation, promotional activities, or other similar techniques. The sellers are using:

Accepted Answer

A)  price competition. 
B)  economic diversification. 
C)  market control. 
D)  nonprice competition. 
E)  price fixing. 
A)  price competition. 
B)  economic diversification. 
C)  market control. 
D)  nonprice competition. 
E)  price fixing.

Question 19

_____ _____ is a form of price competition aimed at improving the ratio of a product's benefits to its  price and related costs.

Accepted Answer

The answer of _____ _____ is a form of price...

Question 20

Which of the following statements about the Robinson-Patman Act is True?

Accepted Answer

A)  The act was created to curb the price discrimination practices of large retailers. 
B)  The act applies only to sales to ultimate household consumers. 
C)  The act makes all price differentials illegal. 
D)  Under the act, buyers and sellers automatically are equally guilty and will receive the same punishment for a violation of the act. 
E)  The act makes many trade discounts illegal. 
A)  The act was created to curb the price discrimination practices of large retailers. 
B)  The act applies only to sales to ultimate household consumers. 
C)  The act makes all price differentials illegal. 
D)  Under the act, buyers and sellers automatically are equally guilty and will receive the same punishment for a violation of the act. 
E)  The act makes many trade discounts illegal.

Critics of resale price maintenance contend it:

On May 15, Riverwalk Café received a $265 invoice for restaurant supplies. The invoice offered the following terms, "3/14, n/30." If the owner pays the invoice by May 25, she should make her check out for:

Orvis, the catalog retailer, sells men's dress slacks for $49, $59, and $69. This method, which is used to simplify buying decisions, is called _ _.

A _____ discount is a deduction granted to buyers for paying their bills within a specified period of time.

The manufacturer of a line of Barbie collectibles wants to use _____ to protect the Barbie image and the value of its collectibles. It also states its primary reasoning for using this strategy is to provide its middlemen with an ample profit margin.

Which of the following is a direct form of price competition?

According to the text, the two primary forms of nonprice competition are product differentiation and market augmentation.

Imagine the manufacturer of Claude Montana perfume quotes a retail price of $75 on one bottle of the French designer's signature perfume and offers trade discounts of 30 percent to retailers and 15 percent to wholesalers. The perfume wholesaler would receive _____ per bottle in revenue.

_____ pricing is a variation of the one-price strategy. This strategy allows the purchaser to pay a stipulated single price and then consume as much or as little as desired.

Whenever Appletree Doors and Windows ships a set of French doors to New York or Hawaii, it requires the buyer to pay all shipping costs because it uses _ _ pricing.

The two types of rebates are coupon and mail-in.

Manufacturers offer _____, deductions from a seller's list price, to encourage customers to buy in larger amounts or to make most of their purchases from that seller.

For which of the following products would a manufacturer be LEAST likely to offer a seasonal discount?

If Willie's Car Detailers charged $75.00 per car, no matter what condition the car was in when the owner brought it in, then Andrew is using an extreme form of one-price strategy.

As the financial officer for a company that manufactures lawn furniture from recycled materials, Mike knows the company needs to get its buyers to pay their bills more quickly. What kind of discount would be most likely to encourage faster bill payment?

When a seller attempts to shift the consumer demand curve for its product to the right, it uses product differentiation, promotional activities, or other similar techniques. The sellers are using:

_ _ is a form of price competition aimed at improving the ratio of a product's benefits to its price and related costs.

Which of the following statements about the Robinson-Patman Act is True?

The Field of Marketing

The Dynamic Marketing Environment

Global Markets and Marketing

Consumer Markets and Buying Behavior

Business Markets and Buying Behavior

Marketing Research and Market Information

Product Planning and Development

Product-Mix Strategies

Brands, Packaging, and Other Product Features

Services Marketing

Price Determination

Channels of Distribution

Retailing

Wholesaling and Physical Distribution

Integrated Marketing Communications

Personal Selling and Sales Management

Advertising, Sales Promotion, and Public Relations

Strategic Marketing Planning

Marketing Implementation and Evaluation

Marketing and the Information Economy

Market Segmentation Targeting and Positioning

Filters

Exam 13: Pricing Strategies

Critics of resale price maintenance contend it:

On May 15, Riverwalk Café received a $265 invoice for restaurant supplies. The invoice offered the following terms, "3/14, n/30." If the owner pays the invoice by May 25, she should make her check out for:

Orvis, the catalog retailer, sells men's dress slacks for $49, $59, and $69. This method, which is used to simplify buying decisions, is called _____ _____.

A _____ discount is a deduction granted to buyers for paying their bills within a specified period of time.

The manufacturer of a line of Barbie collectibles wants to use _____ to protect the Barbie image and the value of its collectibles. It also states its primary reasoning for using this strategy is to provide its middlemen with an ample profit margin.

Which of the following is a direct form of price competition?

According to the text, the two primary forms of nonprice competition are product differentiation and market augmentation.

Imagine the manufacturer of Claude Montana perfume quotes a retail price of $75 on one bottle of the French designer's signature perfume and offers trade discounts of 30 percent to retailers and 15 percent to wholesalers. The perfume wholesaler would receive _____ per bottle in revenue.

_____ pricing is a variation of the one-price strategy. This strategy allows the purchaser to pay a stipulated single price and then consume as much or as little as desired.

Whenever Appletree Doors and Windows ships a set of French doors to New York or Hawaii, it requires the buyer to pay all shipping costs because it uses _____ _____ pricing.

The two types of rebates are coupon and mail-in.

Manufacturers offer _____, deductions from a seller's list price, to encourage customers to buy in larger amounts or to make most of their purchases from that seller.

For which of the following products would a manufacturer be LEAST likely to offer a seasonal discount?

If Willie's Car Detailers charged $75.00 per car, no matter what condition the car was in when the owner brought it in, then Andrew is using an extreme form of one-price strategy.

As the financial officer for a company that manufactures lawn furniture from recycled materials, Mike knows the company needs to get its buyers to pay their bills more quickly. What kind of discount would be most likely to encourage faster bill payment?

When a seller attempts to shift the consumer demand curve for its product to the right, it uses product differentiation, promotional activities, or other similar techniques. The sellers are using:

_____ _____ is a form of price competition aimed at improving the ratio of a product's benefits to its price and related costs.

Which of the following statements about the Robinson-Patman Act is True?

The Field of Marketing

The Dynamic Marketing Environment

Global Markets and Marketing

Consumer Markets and Buying Behavior

Business Markets and Buying Behavior

Marketing Research and Market Information

Product Planning and Development

Product-Mix Strategies

Brands, Packaging, and Other Product Features

Services Marketing

Price Determination

Channels of Distribution

Retailing

Wholesaling and Physical Distribution

Integrated Marketing Communications

Personal Selling and Sales Management

Advertising, Sales Promotion, and Public Relations

Strategic Marketing Planning

Marketing Implementation and Evaluation

Marketing and the Information Economy

Market Segmentation Targeting and Positioning

Filters

Orvis, the catalog retailer, sells men's dress slacks for $49, $59, and $69. This method, which is used to simplify buying decisions, is called _ _.

Whenever Appletree Doors and Windows ships a set of French doors to New York or Hawaii, it requires the buyer to pay all shipping costs because it uses _ _ pricing.

_ _ is a form of price competition aimed at improving the ratio of a product's benefits to its price and related costs.