Question 1

A quantity discount is a price reduction to buyers who purchase ________.

Accepted Answer

A) frequently 
B) large volumes 
C) close outs 
D) inferior merchandise 
E) superior merchandise 
A) frequently 
B) large volumes 
C) close outs 
D) inferior merchandise 
E) superior merchandise

Question 2

________ that influence pricing decisions include the nature of the market and demand.

Accepted Answer

A) Internal factors 
B) Elasticity factors 
C) External factors 
D) Target factors 
E) Domestic factors 
A) Internal factors 
B) Elasticity factors 
C) External factors 
D) Target factors 
E) Domestic factors

Question 3

Explain the concept of a price floor.

Accepted Answer

A price floor is the lowest pr

Question 4

When setting prices, the company must consider its external environment. Describe four aspects of the external environment and how they affect businesses.

Accepted Answer

Economic conditions affect both the cost

Question 5

When Whallans Gift Card Shop offers a price reduction to customers who buy Christmas cards the week after Christmas, Whallans is giving a(n)________ discount.

Accepted Answer

A) functional 
B) seasonal 
C) annual 
D) allowance 
E) credit 
A) functional 
B) seasonal 
C) annual 
D) allowance 
E) credit

Question 6

________ prices are the prices that buyers carry in their mind and refers to when looking at a given product.

Accepted Answer

A) Psychological 
B) Reference 
C) Promotional 
D) Geographical 
E) Dynamic 
A) Psychological 
B) Reference 
C) Promotional 
D) Geographical 
E) Dynamic

Question 7

When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n)________.

Accepted Answer

A) trade discount 
B) functional discount 
C) allowance 
D) promotional allowance 
E) trade credit 
A) trade discount 
B) functional discount 
C) allowance 
D) promotional allowance 
E) trade credit

Question 8

Why is it difficult to enforce laws against predatory pricing?

Accepted Answer

Predatory pricing is a matter of intent-

Question 9

Big Mike's Health Food Store sells nutritional energy-producing foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of ________.

Accepted Answer

A) promotional pricing 
B) cost-plus pricing 
C) dynamic pricing 
D) value pricing 
E) penetration pricing 
A) promotional pricing 
B) cost-plus pricing 
C) dynamic pricing 
D) value pricing 
E) penetration pricing

Question 10

Melt-In-Your-Mouth Candy Stores prices its candy displays at ten different price levels, ranging from $2.00 per pound to $4.95 per pound. This is an illustration of price steps.

Accepted Answer

A) True 
 B)False

Question 11

Price escalation in international markets is most likely to result from the higher costs of selling in another country and differences in market conditions or ________.

Accepted Answer

A) cultural preferences 
B) selling strategies 
C) regional tastes 
D) customer perceptions 
E) language barriers 
A) cultural preferences 
B) selling strategies 
C) regional tastes 
D) customer perceptions 
E) language barriers

Question 12

A marketer's fixed costs are $400,000, the variable cost is $16, and the company expects the product to sell for $24. What is the break-even volume in units?

Accepted Answer

The break-even volume in units

Question 13

When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing.

Accepted Answer

A) revenue management 
B) penetration 
C) skimming 
D) time-based 
E) value-added 
A) revenue management 
B) penetration 
C) skimming 
D) time-based 
E) value-added

Question 14

Companies involved in deciding which items to include in the price of the main product and which to offer as options are engaged in ________ pricing.

Accepted Answer

A) product bundle 
B) optional-product 
C) captive-product 
D) by-product 
E) skimming 
A) product bundle 
B) optional-product 
C) captive-product 
D) by-product 
E) skimming

Question 15

Give two examples of products for which marketers may use optional-product pricing.

Accepted Answer

Optional-product pricing is the pricing

Question 16

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________.

Accepted Answer

A) market-level pricing 
B) market-competitive pricing 
C) market-skimming pricing 
D) market-price lining 
E) market-price filling 
A) market-level pricing 
B) market-competitive pricing 
C) market-skimming pricing 
D) market-price lining 
E) market-price filling

Question 17

When a manufacturer offers a ________, customers buy products from manufacturers' dealers within a specified time period and the manufacturer sends the customer a check.

Accepted Answer

A) cash rebate 
B) special event price 
C) dealer reduction 
D) promotional pricing reward 
E) discount allowance 
A) cash rebate 
B) special event price 
C) dealer reduction 
D) promotional pricing reward 
E) discount allowance

Question 18

________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks.

Accepted Answer

A) Value-based 
B) Fixed cost 
C) Cost-based 
D) Variable 
E) Skimming 
A) Value-based 
B) Fixed cost 
C) Cost-based 
D) Variable 
E) Skimming

Question 19

Which of the following conditions would most likely to support market-penetration pricing?

Accepted Answer

A) The market must be highly price sensitive. 
B) Production and distribution costs rise as sales volume increases. 
C) The product's quality and image must support the price. 
D) The low price does not affect the competition. 
E) A low price does not affect market growth. 
A) The market must be highly price sensitive. 
B) Production and distribution costs rise as sales volume increases. 
C) The product's quality and image must support the price. 
D) The low price does not affect the competition. 
E) A low price does not affect market growth.

Question 20

Which of the following is the opposite of FOB-origin pricing?

Accepted Answer

A) basing-point pricing 
B) absorption pricing 
C) uniform-delivered pricing 
D) freight-absorption pricing 
E) zone pricing 
A) basing-point pricing 
B) absorption pricing 
C) uniform-delivered pricing 
D) freight-absorption pricing 
E) zone pricing

A quantity discount is a price reduction to buyers who purchase ________.

________ that influence pricing decisions include the nature of the market and demand.

Explain the concept of a price floor.

When setting prices, the company must consider its external environment. Describe four aspects of the external environment and how they affect businesses.

When Whallans Gift Card Shop offers a price reduction to customers who buy Christmas cards the week after Christmas, Whallans is giving a(n)________ discount.

________ prices are the prices that buyers carry in their mind and refers to when looking at a given product.

When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n)________.

Why is it difficult to enforce laws against predatory pricing?

Big Mike's Health Food Store sells nutritional energy-producing foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of ________.

Melt-In-Your-Mouth Candy Stores prices its candy displays at ten different price levels, ranging from $2.00 per pound to $4.95 per pound. This is an illustration of price steps.

Price escalation in international markets is most likely to result from the higher costs of selling in another country and differences in market conditions or ________.

A marketer's fixed costs are $400,000, the variable cost is $16, and the company expects the product to sell for $24. What is the break-even volume in units?

When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing.

Companies involved in deciding which items to include in the price of the main product and which to offer as options are engaged in ________ pricing.

Give two examples of products for which marketers may use optional-product pricing.

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________.

When a manufacturer offers a ________, customers buy products from manufacturers' dealers within a specified time period and the manufacturer sends the customer a check.

________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks.

Which of the following conditions would most likely to support market-penetration pricing?

Which of the following is the opposite of FOB-origin pricing?

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Sustainable Marketing, Social Responsibility and Ethics

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behaviour

Segmentation, Targeting, and Positioning

Developing and Managing Products and Services

Brand Strategy and Management

Marketing Channels

Retailing and Wholesaling

Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

The Global Marketplace

Filters

Exam 10: Pricing: Understanding and Capturing Customer Value

A quantity discount is a price reduction to buyers who purchase ________.

________ that influence pricing decisions include the nature of the market and demand.

Explain the concept of a price floor.

When setting prices, the company must consider its external environment. Describe four aspects of the external environment and how they affect businesses.

When Whallans Gift Card Shop offers a price reduction to customers who buy Christmas cards the week after Christmas, Whallans is giving a(n)________ discount.

________ prices are the prices that buyers carry in their mind and refers to when looking at a given product.

When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n)________.

Why is it difficult to enforce laws against predatory pricing?

Big Mike's Health Food Store sells nutritional energy-producing foods. The price of the products sold varies according to individual customer accounts and situations. For example, long-time customers receive discounts. This strategy is an example of ________.

Melt-In-Your-Mouth Candy Stores prices its candy displays at ten different price levels, ranging from $2.00 per pound to $4.95 per pound. This is an illustration of price steps.

Price escalation in international markets is most likely to result from the higher costs of selling in another country and differences in market conditions or ________.

A marketer's fixed costs are $400,000, the variable cost is $16, and the company expects the product to sell for $24. What is the break-even volume in units?

When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing.

Companies involved in deciding which items to include in the price of the main product and which to offer as options are engaged in ________ pricing.

Give two examples of products for which marketers may use optional-product pricing.

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________.

When a manufacturer offers a ________, customers buy products from manufacturers' dealers within a specified time period and the manufacturer sends the customer a check.

________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks.

Which of the following conditions would most likely to support market-penetration pricing?

Which of the following is the opposite of FOB-origin pricing?

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Sustainable Marketing, Social Responsibility and Ethics

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behaviour

Segmentation, Targeting, and Positioning

Developing and Managing Products and Services

Brand Strategy and Management

Marketing Channels

Retailing and Wholesaling

Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

The Global Marketplace

Filters