Question 1

Discounts that are designed to encourage repeat buying by a single customer over a given time period,such as a year,are referred to as

Accepted Answer

A) promotional allowances. 
B) cumulative quantity discounts. 
C) cash discounts. 
D) functional discounts. 
E) noncumulative quantity discounts. 
A) promotional allowances. 
B) cumulative quantity discounts. 
C) cash discounts. 
D) functional discounts. 
E) noncumulative quantity discounts.

Question 2

Figure 14-2
  
-Figure 14-2 above represents the four approaches to selecting an appropriate price level.Box D represents which approach?

Accepted Answer

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

Question 3

When the Swiss watchmaker TAG Heuer quadruped the average price of its watches,its sales volume jumped sevenfold.The likely cause of this volume increase is that

Accepted Answer

A) the watch market is highly conservative. 
B) economies of scale in production would be substantial. 
C) retailers are not willing to carry new brands of watches in this category. 
D) once the initial price is set,it is nearly impossible to lower the price without alienating early buyers. 
E) the watch category frequently uses prestige pricing,wherein lower prices may result in lower sales. 
A) the watch market is highly conservative. 
B) economies of scale in production would be substantial. 
C) retailers are not willing to carry new brands of watches in this category. 
D) once the initial price is set,it is nearly impossible to lower the price without alienating early buyers. 
E) the watch category frequently uses prestige pricing,wherein lower prices may result in lower sales.

Question 4

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as

Accepted Answer

A) skimming pricing. 
B) status pricing. 
C) price lining. 
D) value pricing. 
E) prestige pricing. 
A) skimming pricing. 
B) status pricing. 
C) price lining. 
D) value pricing. 
E) prestige pricing.

Question 5

What pricing method is used because it establishes a benchmark to show how much of a firm's effort is needed to achieve a certain profit?

Accepted Answer

A) experience curve pricing 
B) target return-on-sales pricing 
C) standard markup pricing 
D) target profit pricing 
E) loss-leader pricing 
A) experience curve pricing 
B) target return-on-sales pricing 
C) standard markup pricing 
D) target profit pricing 
E) loss-leader pricing

Question 6

Supermarket managers use standard markup pricing because it is particularly suited to situations when

Accepted Answer

A) there is a large number of products and estimating the demand for each would be difficult and time consuming. 
B) there is a large number of product lines,all with basically the same product attributes. 
C) there is a specific profit goal that needs to be achieved. 
D) there is a policy of selling every item in a product line at the same price regardless of the product class. 
E) the products are perishable or seasonal. 
A) there is a large number of products and estimating the demand for each would be difficult and time consuming. 
B) there is a large number of product lines,all with basically the same product attributes. 
C) there is a specific profit goal that needs to be achieved. 
D) there is a policy of selling every item in a product line at the same price regardless of the product class. 
E) the products are perishable or seasonal.

Question 7

Demand-oriented approaches weigh factors that underlie expected ________ more heavily than such factors as cost,profit,and competition when selecting a price level.

Accepted Answer

A) total revenue 
B) stakeholder concerns 
C) prevailing prices 
D) product substitutes 
E) customer tastes 
A) total revenue 
B) stakeholder concerns 
C) prevailing prices 
D) product substitutes 
E) customer tastes

Question 8

The retail price of fax machines has decreased from over $10,000 in the early 1970s to less than $100 today.This is due in large part to

Accepted Answer

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

Question 9

List four of the eight demand-oriented approaches to selecting an approximate price level and define what they are.

Accepted Answer

Demand-oriented approaches are (1)skimmi

Question 10

Delta Air Lines offers vacation packages that include airfare,car rental,and lodging.Delta Air is using a(n)________ pricing strategy.

Accepted Answer

A) penetration 
B) prestige 
C) bundle 
D) odd-even 
E) standard markup 
A) penetration 
B) prestige 
C) bundle 
D) odd-even 
E) standard markup

Question 11

Everyday low pricing refers to

Accepted Answer

A) the pricing strategy of "extreme value" stores to maintain high price-quality images for the products they sell. 
B) the pricing strategy of starting a product at standard list price and then lowering the price by a certain percentage until it is sold. 
C) short-term price reductions when consumer demand takes a significant and unexpected dip. 
D) the practice of replacing promotional allowances with lower manufacturer list prices. 
E) a form of predatory pricing used solely for the purpose of undercutting competitors' prices. 
A) the pricing strategy of "extreme value" stores to maintain high price-quality images for the products they sell. 
B) the pricing strategy of starting a product at standard list price and then lowering the price by a certain percentage until it is sold. 
C) short-term price reductions when consumer demand takes a significant and unexpected dip. 
D) the practice of replacing promotional allowances with lower manufacturer list prices. 
E) a form of predatory pricing used solely for the purpose of undercutting competitors' prices.

Question 12

A glassblowing studio makes fine pieces of art glass.It has decided on a retail list price of $2,000 for one of its vases.They sell only through wholesalers and retailers who receive 50/10 terms.How much will the studio receive from selling this vase?

Accepted Answer

A) $2,000 
B) $1,000 
C) $900 
D) $800 
E) $100 
A) $2,000 
B) $1,000 
C) $900 
D) $800 
E) $100

Question 13

What type of discount to resellers is based in part on where they are in the channel?

Accepted Answer

A) seasonal discounts 
B) trade discounts 
C) cash discounts 
D) promotional allowances 
E) trade-in allowances 
A) seasonal discounts 
B) trade discounts 
C) cash discounts 
D) promotional allowances 
E) trade-in allowances

Question 14

What type of discount would Toro,a domestic yard machinery company,most likely offer its channel members to carry and sell its riding lawn mowers during the winter?

Accepted Answer

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

Question 15

What is critical when using target profit pricing?

Accepted Answer

A) demand that is insensitive to price over the range being considered 
B) a higher-than-average price compared to competitors 
C) a low potential for currency exchange rates to change 
D) a lower-than-average price compared to competitors 
E) a new or innovative product 
A) demand that is insensitive to price over the range being considered 
B) a higher-than-average price compared to competitors 
C) a low potential for currency exchange rates to change 
D) a lower-than-average price compared to competitors 
E) a new or innovative product

Question 16

Tendollars.com offers thousands of gifts,all priced at $10.This is an example of a(n)

Accepted Answer

A) skimming pricing approach. 
B) loss-leader pricing approach. 
C) fixed-price policy. 
D) penetration pricing approach. 
E) everyday low pricing approach. 
A) skimming pricing approach. 
B) loss-leader pricing approach. 
C) fixed-price policy. 
D) penetration pricing approach. 
E) everyday low pricing approach.

Question 17

Which of the following is the step in setting a final price for a product that occurs immediately after determining cost,volume,and profit relationships?

Accepted Answer

A) set list or quoted price 
B) select an approximate price level 
C) scan competitors for prices of similar products or services 
D) estimate demand and revenue 
E) identify pricing objectives and constraints 
A) set list or quoted price 
B) select an approximate price level 
C) scan competitors for prices of similar products or services 
D) estimate demand and revenue 
E) identify pricing objectives and constraints

Question 18

The Brazilian government wants to build a global positioning satellite (GPS)system.The satellite manufacturer will receive a mutually agreed-on profit over and above all costs associated with the project.The pricing approach the satellite manufacturer uses is called

Accepted Answer

A) standard markup pricing. 
B) experience curve pricing. 
C) cost-plus-percentage-of-cost pricing. 
D) cost-plus-fixed-fee pricing. 
E) bundle pricing. 
A) standard markup pricing. 
B) experience curve pricing. 
C) cost-plus-percentage-of-cost pricing. 
D) cost-plus-fixed-fee pricing. 
E) bundle pricing.

Question 19

Reductions from list or quoted prices to buyers for performing some activity are referred to as

Accepted Answer

A) allowances. 
B) subsidies. 
C) remittances. 
D) noncumulative deductions. 
E) list price deductions. 
A) allowances. 
B) subsidies. 
C) remittances. 
D) noncumulative deductions. 
E) list price deductions.

Question 20

The prices for all furniture sold at American Furniture Warehouse end in $9.99,such as $599.99,$899.99,etc.American Furniture Warehouse uses

Accepted Answer

A) odd-even pricing. 
B) dynamic pricing. 
C) price lining. 
D) bundle pricing. 
E) product-line pricing. 
A) odd-even pricing. 
B) dynamic pricing. 
C) price lining. 
D) bundle pricing. 
E) product-line pricing.

Exam 14: Arriving at the Final Price

Discounts that are designed to encourage repeat buying by a single customer over a given time period,such as a year,are referred to as

Figure 14-2 -Figure 14-2 above represents the four approaches to selecting an appropriate price level.Box D represents which approach?

When the Swiss watchmaker TAG Heuer quadruped the average price of its watches,its sales volume jumped sevenfold.The likely cause of this volume increase is that

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as

What pricing method is used because it establishes a benchmark to show how much of a firm's effort is needed to achieve a certain profit?

Supermarket managers use standard markup pricing because it is particularly suited to situations when

Demand-oriented approaches weigh factors that underlie expected ________ more heavily than such factors as cost,profit,and competition when selecting a price level.

The retail price of fax machines has decreased from over $10,000 in the early 1970s to less than $100 today.This is due in large part to

List four of the eight demand-oriented approaches to selecting an approximate price level and define what they are.

Delta Air Lines offers vacation packages that include airfare,car rental,and lodging.Delta Air is using a(n)________ pricing strategy.

Everyday low pricing refers to

A glassblowing studio makes fine pieces of art glass.It has decided on a retail list price of $2,000 for one of its vases.They sell only through wholesalers and retailers who receive 50/10 terms.How much will the studio receive from selling this vase?

What type of discount to resellers is based in part on where they are in the channel?

What type of discount would Toro,a domestic yard machinery company,most likely offer its channel members to carry and sell its riding lawn mowers during the winter?

What is critical when using target profit pricing?

Tendollars.com offers thousands of gifts,all priced at $10.This is an example of a(n)

Which of the following is the step in setting a final price for a product that occurs immediately after determining cost,volume,and profit relationships?

The Brazilian government wants to build a global positioning satellite (GPS)system.The satellite manufacturer will receive a mutually agreed-on profit over and above all costs associated with the project.The pricing approach the satellite manufacturer uses is called

Reductions from list or quoted prices to buyers for performing some activity are referred to as

The prices for all furniture sold at American Furniture Warehouse end in $9.99,such as $599.99,$899.99,etc.American Furniture Warehouse uses

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

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