Question 1

All of the following are demand-oriented approaches to selecting an approximate price level except which?

Accepted Answer

A) odd-even 
B) yield management 
C) cost-plus 
D) bundle 
E) prestige 
A) odd-even 
B) yield management 
C) cost-plus 
D) bundle 
E) prestige

Question 2

Setting different prices for products and services in real time in response to supply and demand conditions is referred to as

Accepted Answer

A) price lining. 
B) a dynamic pricing policy. 
C) customary pricing. 
D) price fixing. 
E) discretionary pricing. 
A) price lining. 
B) a dynamic pricing policy. 
C) customary pricing. 
D) price fixing. 
E) discretionary pricing.

Question 3

The retail price of mobile phones (unsubsidized)has decreased from $4,000 in 1983 when Motorola commercialized the device,to less than $99 today as the volume increased from zero to millions of units sold.This is due in large part to which type of pricing approach?

Accepted Answer

A) skimming pricing 
B) prestige pricing 
C) experience curve pricing 
D) odd-even pricing 
E) customary pricing 
A) skimming pricing 
B) prestige pricing 
C) experience curve pricing 
D) odd-even pricing 
E) customary pricing

Question 4

To reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs,manufacturers offer

Accepted Answer

A) noncumulative discounts. 
B) cumulative discounts. 
C) trade discounts. 
D) seasonal discounts. 
E) functional discounts. 
A) noncumulative discounts. 
B) cumulative discounts. 
C) trade discounts. 
D) seasonal discounts. 
E) functional discounts.

Question 5

Which of the following is a demand-oriented approach to pricing?

Accepted Answer

A) customary pricing 
B) target profit pricing 
C) standard markup pricing 
D) bundle pricing 
E) service-oriented pricing 
A) customary pricing 
B) target profit pricing 
C) standard markup pricing 
D) bundle pricing 
E) service-oriented pricing

Question 6

The two forms of cost-plus pricing are

Accepted Answer

A) cost-plus-fixed-fee pricing and cost-plus-variable-fee pricing. 
B) cost-plus-ROI pricing and cost-minus-ROI pricing. 
C) target return on sales pricing and target return on investment pricing. 
D) cost-plus-percentage-of-cost pricing and cost-plus-fixed-fee pricing. 
E) dynamic pricing and flexible pricing. 
A) cost-plus-fixed-fee pricing and cost-plus-variable-fee pricing. 
B) cost-plus-ROI pricing and cost-minus-ROI pricing. 
C) target return on sales pricing and target return on investment pricing. 
D) cost-plus-percentage-of-cost pricing and cost-plus-fixed-fee pricing. 
E) dynamic pricing and flexible pricing.

Question 7

Which of the following statements about everyday low pricing (EDLP)is most accurate?

Accepted Answer

A) EDLP encourages manufacturer allowances. 
B) Supermarkets have hailed EDLP as the most effective form of value pricing. 
C) Some argue that EDLP without price specials is boring for many grocery shoppers. 
D) EDLP allows supermarkets to use deeply discounted price specials. 
E) EDLP can increase average retail prices by as much as 10 percent. 
A) EDLP encourages manufacturer allowances. 
B) Supermarkets have hailed EDLP as the most effective form of value pricing. 
C) Some argue that EDLP without price specials is boring for many grocery shoppers. 
D) EDLP allows supermarkets to use deeply discounted price specials. 
E) EDLP can increase average retail prices by as much as 10 percent.

Question 8

Which of the following statements about geographical adjustments to price is most accurate?

Accepted Answer

A) In FOB origin pricing,the seller selects the mode of transportation. 
B) In FOB with freight-allowed pricing,the seller must pay for all transportation costs. 
C) Multiple-zone pricing is sometimes referred to as "spider web" pricing. 
D) Basing-point pricing methods have been used in industries where freight expenses are a significant part of the total cost to the buyer. 
E) Geographical adjustments can be subject to government regulation if the firm cannot supply objective data (lists of mountains,rivers,weather conditions,etc. )explaining why those adjustments need to be made. 
A) In FOB origin pricing,the seller selects the mode of transportation. 
B) In FOB with freight-allowed pricing,the seller must pay for all transportation costs. 
C) Multiple-zone pricing is sometimes referred to as "spider web" pricing. 
D) Basing-point pricing methods have been used in industries where freight expenses are a significant part of the total cost to the buyer. 
E) Geographical adjustments can be subject to government regulation if the firm cannot supply objective data (lists of mountains,rivers,weather conditions,etc. )explaining why those adjustments need to be made.

Question 9

Price lining refers to

Accepted Answer

A) charging different prices to different buyers for goods of like grade and quality. 
B) setting a low initial price on a new product to appeal immediately to the mass market. 
C) setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark. 
D) setting prices a few dollars or cents under an even number. 
E) setting the price of a line of products at a number of different specific pricing points. 
A) charging different prices to different buyers for goods of like grade and quality. 
B) setting a low initial price on a new product to appeal immediately to the mass market. 
C) setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark. 
D) setting prices a few dollars or cents under an even number. 
E) setting the price of a line of products at a number of different specific pricing points.

Question 10

Family Dollar Stores,like Dollar Value Stores and 99¢ Only Stores,use what type of pricing policy?

Accepted Answer

A) dynamic pricing 
B) customary pricing 
C) flexible pricing 
D) fixed-price 
E) at-market pricing 
A) dynamic pricing 
B) customary pricing 
C) flexible pricing 
D) fixed-price 
E) at-market pricing

Question 11

Talbots sells women's clothes.A long-sleeved scoop neck T-shirt with the Talbots label costs $45.By comparison,you can buy a T-shirt for $5 at a Family Dollar Store,but it won't have the prestigious Talbots label or quality.What kind of demand-oriented approach to pricing does Talbots use?

Accepted Answer

A) experience curve pricing 
B) skimming pricing 
C) demand-backward pricing 
D) prestige pricing 
E) flexible pricing 
A) experience curve pricing 
B) skimming pricing 
C) demand-backward pricing 
D) prestige pricing 
E) flexible pricing

Question 12

Trade discounts are offered to resellers in the marketing channel on the basis of the marketing activities they are expected to perform in the future and

Accepted Answer

A) the frequency of the order. 
B) where they are in the channel. 
C) when orders are placed during the year. 
D) the length of the relationship with the manufacturer. 
E) the size of the order. 
A) the frequency of the order. 
B) where they are in the channel. 
C) when orders are placed during the year. 
D) the length of the relationship with the manufacturer. 
E) the size of the order.

Question 13

A ________ approach often results in changing prices based on time,day,week,or season.

Accepted Answer

A) skimming pricing 
B) bundle pricing 
C) yield management pricing 
D) target return on investment pricing 
E) standard markup pricing 
A) skimming pricing 
B) bundle pricing 
C) yield management pricing 
D) target return on investment pricing 
E) standard markup pricing

Question 14

In some cases,penetration pricing may follow skimming pricing.The skimming pricing would help ________ and the penetration pricing would help

Accepted Answer

A) increase market share;attract price-insensitive customers. 
B) attract price-sensitive customers;increase market share. 
C) recoup initial research and development costs;increase market share. 
D) recoup initial research and development costs;improve firm reputation. 
E) increase market share;attract price insensitive customers. 
A) increase market share;attract price-insensitive customers. 
B) attract price-sensitive customers;increase market share. 
C) recoup initial research and development costs;increase market share. 
D) recoup initial research and development costs;improve firm reputation. 
E) increase market share;attract price insensitive customers.

Question 15

Penetration pricing is considered to be a ________ approach to pricing.

Accepted Answer

A) demand-oriented 
B) cost-oriented 
C) profit-oriented 
D) competition-oriented 
E) service-oriented 
A) demand-oriented 
B) cost-oriented 
C) profit-oriented 
D) competition-oriented 
E) service-oriented

Question 16

What is experience curve pricing and how does it relate to marketing strategies?

Accepted Answer

Experience curve pricing is based on the

Question 17

The pricing approach that estimates the price that ultimate consumers would be willing to pay for a product;works backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers is referred to as

Accepted Answer

A) cost-benefit pricing. 
B) cost-plus percentage-of-cost pricing. 
C) target pricing. 
D) cost-plus fixed-fee pricing. 
E) product feature pricing. 
A) cost-benefit pricing. 
B) cost-plus percentage-of-cost pricing. 
C) target pricing. 
D) cost-plus fixed-fee pricing. 
E) product feature pricing.

Question 18

If you were to buy one peach tree and one apple tree from the Stark Bros.fruit trees and landscaping catalog in two separate orders,you would pay a total of $109.99.However,if you order the peach and apple tree together in the same order,you pay only $89.99 each.When purchasing the two trees together,what pricing strategy does Stark Bros.employ?

Accepted Answer

A) product-line pricing 
B) prestige pricing 
C) price lining 
D) discount pricing 
E) bundle pricing 
A) product-line pricing 
B) prestige pricing 
C) price lining 
D) discount pricing 
E) bundle pricing

Question 19

After offering a promotional allowance,the price of a product returns to its regular price level.When this happens,the retail store's gross margin on that product ________ on those items that were bought with the allowance but not sold during the price special promotion.

Accepted Answer

A) decreases substantially 
B) increases substantially 
C) remains the same 
D) fluctuates wildly 
E) vanishes 
A) decreases substantially 
B) increases substantially 
C) remains the same 
D) fluctuates wildly 
E) vanishes

Question 20

Resale price maintenance was declared illegal in 1975 under the

Accepted Answer

A) Sherman Act. 
B) Consumer Goods Pricing Act. 
C) Robinson-Patman Act. 
D) Federal Trade Commission Act. 
E) Clayton Act. 
A) Sherman Act. 
B) Consumer Goods Pricing Act. 
C) Robinson-Patman Act. 
D) Federal Trade Commission Act. 
E) Clayton Act.

Exam 14: Arriving at the Final Price

All of the following are demand-oriented approaches to selecting an approximate price level except which?

Setting different prices for products and services in real time in response to supply and demand conditions is referred to as

The retail price of mobile phones (unsubsidized)has decreased from $4,000 in 1983 when Motorola commercialized the device,to less than $99 today as the volume increased from zero to millions of units sold.This is due in large part to which type of pricing approach?

To reward wholesalers and retailers for the risk they accept in assuming increased inventory carrying costs,manufacturers offer

Which of the following is a demand-oriented approach to pricing?

The two forms of cost-plus pricing are

Which of the following statements about everyday low pricing (EDLP)is most accurate?

Which of the following statements about geographical adjustments to price is most accurate?

Price lining refers to

Family Dollar Stores,like Dollar Value Stores and 99¢ Only Stores,use what type of pricing policy?

Talbots sells women's clothes.A long-sleeved scoop neck T-shirt with the Talbots label costs $45.By comparison,you can buy a T-shirt for $5 at a Family Dollar Store,but it won't have the prestigious Talbots label or quality.What kind of demand-oriented approach to pricing does Talbots use?

Trade discounts are offered to resellers in the marketing channel on the basis of the marketing activities they are expected to perform in the future and

A ________ approach often results in changing prices based on time,day,week,or season.

In some cases,penetration pricing may follow skimming pricing.The skimming pricing would help ________ and the penetration pricing would help

Penetration pricing is considered to be a ________ approach to pricing.

What is experience curve pricing and how does it relate to marketing strategies?

The pricing approach that estimates the price that ultimate consumers would be willing to pay for a product;works backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers is referred to as

After offering a promotional allowance,the price of a product returns to its regular price level.When this happens,the retail store's gross margin on that product ________ on those items that were bought with the allowance but not sold during the price special promotion.

Resale price maintenance was declared illegal in 1975 under the

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, targeting, and Positioning

Developing New Products and Services

Managing Successful Products, services, and Brands

Services Marketing

Building the Price Foundation

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising,sales Promotion,and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Writing Successful Marketing and Business Plans: Tips and Guidelines

Financial Statements and Ratios

Filters