Question 1

Figure 14-7
  
-Figure 14-7 above shows the three major types of special adjustments to the list or quoted price.Box C represents

Accepted Answer

A) demand-oriented price adjustments. 
B) allowances. 
C) customary pricing adjustments. 
D) discounts. 
E) geographical adjustments. 
A) demand-oriented price adjustments. 
B) allowances. 
C) customary pricing adjustments. 
D) discounts. 
E) geographical adjustments.

Question 2

Experience curve 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 3

The two general methods for quoting prices related to transportation costs are FOB origin pricing and

Accepted Answer

A) uniform delivered pricing. 
B) mode of transportation pricing. 
C) regional pricing. 
D) flexible pricing. 
E) FOB destination pricing. 
A) uniform delivered pricing. 
B) mode of transportation pricing. 
C) regional pricing. 
D) flexible pricing. 
E) FOB destination pricing.

Question 4

Which of the following statements regarding cost-oriented approaches is most accurate?

Accepted Answer

A) These methods focus on the demand side of the pricing problem. 
B) These methods account for production,marketing,and overhead expenses. 
C) Target return on investment is an example of a cost-oriented method. 
D) Experience curve pricing is simple to use because costs predictably decrease by 25 percent with each doubling of production. 
E) Cost-oriented approaches are a subcategory of competition-oriented methods. 
A) These methods focus on the demand side of the pricing problem. 
B) These methods account for production,marketing,and overhead expenses. 
C) Target return on investment is an example of a cost-oriented method. 
D) Experience curve pricing is simple to use because costs predictably decrease by 25 percent with each doubling of production. 
E) Cost-oriented approaches are a subcategory of competition-oriented methods.

Question 5

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

Accepted Answer

A) everyday low pricing. 
B) everyday fair pricing. 
C) trade-in allowances. 
D) markdown pricing. 
E) everyday value pricing. 
A) everyday low pricing. 
B) everyday fair pricing. 
C) trade-in allowances. 
D) markdown pricing. 
E) everyday value pricing.

Question 6

Which of the following statements about penetration pricing is most accurate?

Accepted Answer

A) Penetration pricing is a profit-oriented approach to pricing. 
B) Penetration pricing is a cost-oriented pricing method. 
C) Penetration pricing encourages competitors to enter a market. 
D) Penetration pricing is more effective in a price-sensitive market segment. 
E) Penetration pricing usually precedes a skimming pricing. 
A) Penetration pricing is a profit-oriented approach to pricing. 
B) Penetration pricing is a cost-oriented pricing method. 
C) Penetration pricing encourages competitors to enter a market. 
D) Penetration pricing is more effective in a price-sensitive market segment. 
E) Penetration pricing usually precedes a skimming pricing.

Question 7

The manufacturer of a fat-free ice cream with the consistency and taste of regular ice cream is thinking of using a penetration pricing strategy for its new product.Which of the following conditions would argue against using a penetration pricing strategy?

Accepted Answer

A) The ice cream market demonstrates high levels of loyalty. 
B) Economies of scale in production would be substantial. 
C) Retailers are not willing to carry new brands of ice cream in the already overcrowded category. 
D) Once the initial price is set,it is nearly impossible to lower the price without alienating early buyers. 
E) Customers recognize the uniqueness of this patented production process. 
A) The ice cream market demonstrates high levels of loyalty. 
B) Economies of scale in production would be substantial. 
C) Retailers are not willing to carry new brands of ice cream in the already overcrowded category. 
D) Once the initial price is set,it is nearly impossible to lower the price without alienating early buyers. 
E) Customers recognize the uniqueness of this patented production process.

Question 8

Airlines,hotels,and car rental firms all engage in ________ by varying prices based on time,day,week,or season to match supply and demand.

Accepted Answer

A) skimming pricing 
B) yield management pricing 
C) bundle pricing 
D) target pricing 
E) prestige pricing 
A) skimming pricing 
B) yield management pricing 
C) bundle pricing 
D) target pricing 
E) prestige pricing

Question 9

With uniform delivered pricing,the price the seller quotes

Accepted Answer

A) includes all transportation costs. 
B) excludes all transportation costs. 
C) includes a fixed allowance whereby the buyer pays any costs above that allowance. 
D) includes a fixed percentage of transportation costs for which the seller will be responsible. 
E) will guarantee that a retailer will be charged the same transportation fee for all its outlets regardless of where they are located. 
A) includes all transportation costs. 
B) excludes all transportation costs. 
C) includes a fixed allowance whereby the buyer pays any costs above that allowance. 
D) includes a fixed percentage of transportation costs for which the seller will be responsible. 
E) will guarantee that a retailer will be charged the same transportation fee for all its outlets regardless of where they are located.

Question 10

When Kroger,a national supermarket chain,uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level of $4.29),it is attempting to

Accepted Answer

A) drive its competition out of business. 
B) attract customers in hopes they will buy other products as well. 
C) fill its parking lot so its store will look successful. 
D) work with the local bottler to move products that are close to their expiration dates. 
E) help stimulate the local economy and generate good will with its customers. 
A) drive its competition out of business. 
B) attract customers in hopes they will buy other products as well. 
C) fill its parking lot so its store will look successful. 
D) work with the local bottler to move products that are close to their expiration dates. 
E) help stimulate the local economy and generate good will with its customers.

Question 11

Target return-on-investment (ROI)is frequently used by

Accepted Answer

A) contractors. 
B) public utilities. 
C) business-to-business markets. 
D) supermarkets. 
E) small privately owned firms. 
A) contractors. 
B) public utilities. 
C) business-to-business markets. 
D) supermarkets. 
E) small privately owned firms.

Question 12

Which of the following statements about the price-setting process is most accurate?

Accepted Answer

A) When selecting a strategy for setting an initial price,it doesn't matter which one you use as long as you stick with it. 
B) Sometimes pricing strategies overlap,and a seasoned marketer will consider several strategies when choosing an approximate price level. 
C) Demand-oriented pricing approaches rely heavily on competitors' prices. 
D) Skimming pricing is a competition-oriented pricing strategy. 
E) Penetration pricing is the best pricing strategy for companies trying to meet the goals of a profit-oriented pricing approach. 
A) When selecting a strategy for setting an initial price,it doesn't matter which one you use as long as you stick with it. 
B) Sometimes pricing strategies overlap,and a seasoned marketer will consider several strategies when choosing an approximate price level. 
C) Demand-oriented pricing approaches rely heavily on competitors' prices. 
D) Skimming pricing is a competition-oriented pricing strategy. 
E) Penetration pricing is the best pricing strategy for companies trying to meet the goals of a profit-oriented pricing approach.

Question 13

Which of the following pricing techniques is most sensitive to customers' responses to price?

Accepted Answer

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

Question 14

The practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as

Accepted Answer

A) price fixing. 
B) predatory pricing. 
C) price discrimination. 
D) deceptive pricing. 
E) geographical pricing. 
A) price fixing. 
B) predatory pricing. 
C) price discrimination. 
D) deceptive pricing. 
E) geographical pricing.

Question 15

Figure 14-5
  
-Figure 14-5 above shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI).What is the ROI for Scenario B?

Accepted Answer

A) 2% 
B) 5% 
C) 10% 
D) 14% 
E) 17% 
A) 2% 
B) 5% 
C) 10% 
D) 14% 
E) 17%

Question 16

A Patek Philippe Sky Moon Tourbillon men's wristwatch is among the most expensive in the world,costing more than $1.5 million.This is an example of a ________ strategy.

Accepted Answer

A) penetration pricing 
B) target pricing 
C) bundle pricing 
D) loss-leader pricing 
E) prestige pricing 
A) penetration pricing 
B) target pricing 
C) bundle pricing 
D) loss-leader pricing 
E) prestige pricing

Question 17

An ad campaign by Suave shampoo asked television viewers to identify the heads of hair of women who used Suave shampoo and conditioner and those that used the much more expensive salon hair-care products.The idea of the ad was that no one could tell which woman used the much cheaper Suave brand.By making price its selling point,Suave is most likely using

Accepted Answer

A) customary pricing. 
B) loss-leader pricing. 
C) prestige pricing. 
D) skimming pricing. 
E) below-market pricing. 
A) customary pricing. 
B) loss-leader pricing. 
C) prestige pricing. 
D) skimming pricing. 
E) below-market pricing.

Question 18

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

Accepted Answer

A) skimming pricing 
B) prestige pricing 
C) loss-leader pricing 
D) experience curve pricing 
E) bundle pricing 
A) skimming pricing 
B) prestige pricing 
C) loss-leader pricing 
D) experience curve pricing 
E) bundle pricing

Question 19

Odd-even pricing is considered to be a ________ approach to pricing.

Accepted Answer

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

Question 20

Price discrimination refers to

Accepted Answer

A) the practice of charging different prices to different buyers for goods of like grade and quality. 
B) an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. 
C) the practice of charging a very low price for a product with the intent of driving competitors out of business. 
D) a conspiracy among firms to set prices for a product or service. 
E) a seller's requirement that the purchaser of one product also buy another product in the line. 
A) the practice of charging different prices to different buyers for goods of like grade and quality. 
B) an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. 
C) the practice of charging a very low price for a product with the intent of driving competitors out of business. 
D) a conspiracy among firms to set prices for a product or service. 
E) a seller's requirement that the purchaser of one product also buy another product in the line.

Exam 14: Arriving at the Final Price

Figure 14-7 -Figure 14-7 above shows the three major types of special adjustments to the list or quoted price.Box C represents

Experience curve pricing is considered to be a ________ approach to pricing.

The two general methods for quoting prices related to transportation costs are FOB origin pricing and

Which of the following statements regarding cost-oriented approaches is most accurate?

The practice of replacing promotional allowances with lower manufacturer list prices is referred to as

Which of the following statements about penetration pricing is most accurate?

The manufacturer of a fat-free ice cream with the consistency and taste of regular ice cream is thinking of using a penetration pricing strategy for its new product.Which of the following conditions would argue against using a penetration pricing strategy?

Airlines,hotels,and car rental firms all engage in ________ by varying prices based on time,day,week,or season to match supply and demand.

With uniform delivered pricing,the price the seller quotes

When Kroger,a national supermarket chain,uses a special promotion to price a six-pack of soda at $2.09 (which is below its customary price level of $4.29),it is attempting to

Target return-on-investment (ROI)is frequently used by

Which of the following statements about the price-setting process is most accurate?

Which of the following pricing techniques is most sensitive to customers' responses to price?

The practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as

Figure 14-5 -Figure 14-5 above shows the results of a spreadsheet simulation to select a price to achieve a target return on investment (ROI).What is the ROI for Scenario B?

A Patek Philippe Sky Moon Tourbillon men's wristwatch is among the most expensive in the world,costing more than $1.5 million.This is an example of a ________ strategy.

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

Odd-even pricing is considered to be a ________ approach to pricing.

Price discrimination refers to

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

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Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

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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

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Pulling It All Together: the Strategic Marketing Process

Writing Successful Marketing and Business Plans: Tips and Guidelines

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