Question 1

Skimming is an effective strategy to use when products are distinctive or have little competition.

Accepted Answer

A) True 
 B)False

Question 2

What does the demand side of the pricing equation focus on?

Accepted Answer

A)  revenue curves 
B)  cost curves 
C)  marginal curves 
D)  absolute values 
A)  revenue curves 
B)  cost curves 
C)  marginal curves 
D)  absolute values

Question 3

A shortcoming of the breakeven model is that it assumes that per-unit variable costs do not change at different levels of operation.

Accepted Answer

A) True 
 B)False

Question 4

What determines whether a quantity discount is cumulative or noncumulative?

Accepted Answer

A)  the frequency of purchase 
B)  if it is used in conjunction with trade-ins 
C)  the payment to channel members for performing a marketing function 
D)  the timing of the payment 
A)  the frequency of purchase 
B)  if it is used in conjunction with trade-ins 
C)  the payment to channel members for performing a marketing function 
D)  the timing of the payment

Question 5

Penetration pricing is often used in a market in which a new product is likely to face strong competition when introduced.

Accepted Answer

A) True 
 B)False

Question 6

What type of price do large-scale enterprises often have a challenge setting?

Accepted Answer

A)  list price 
B)  transfer price 
C)  removal price 
D)  basing price 
A)  list price 
B)  transfer price 
C)  removal price 
D)  basing price

Question 7

When General Motors introduced the Saturn, it priced the SL sports sedan at $2000 less than the Toyota Corolla DLX and $1500 less than comparable Nissan and Honda automobiles.What pricing strategy is this an example of?

Accepted Answer

A)  skimming 
B)  loss-leader 
C)  competitive 
D)  penetration 
A)  skimming 
B)  loss-leader 
C)  competitive 
D)  penetration

Question 8

Online marketing has added a new opportunity for cannibalization.

Accepted Answer

A) True 
 B)False

Question 9

What type of price is normally quoted to potential buyers before any discounts or allowances are allowed?

Accepted Answer

A)  the unit price 
B)  the list price 
C)  the cash price 
D)  the trade price 
A)  the unit price 
B)  the list price 
C)  the cash price 
D)  the trade price

Question 10

As long as a company can demonstrate that its price discounts and promotional allowances do not restrict competition, the company can avoid any penalties under the Competition Act.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is an example of a rebate?

Accepted Answer

A)  $10 off a $100 purchase for buying in quantity 
B)  $3 off a $100 purchase for paying the bill within 10 days 
C)  $25 off a $100 purchase because of a trade-in at the time of transaction 
D)  $5 returned by mail after a $100 purchase for making the purchase 
A)  $10 off a $100 purchase for buying in quantity 
B)  $3 off a $100 purchase for paying the bill within 10 days 
C)  $25 off a $100 purchase because of a trade-in at the time of transaction 
D)  $5 returned by mail after a $100 purchase for making the purchase

Question 12

If prices go up and remain high, some products once regarded as necessities may be dismissed as luxuries.

Accepted Answer

A) True 
 B)False

Question 13

If the target return from the sale of a product is expressed as a percentage of sales, it can be included in the breakeven analysis formula as a variable cost.

Accepted Answer

A) True 
 B)False

Question 14

Setting the price of a good at a high level so as to discourage its consumption to accomplish a social objective is a strategy often applied by government.

Accepted Answer

A) True 
 B)False

Question 15

Every online marketer is inherently a global marketer that must understand the internal and external conditions that affect global pricing strategies.

Accepted Answer

A) True 
 B)False

Question 16

Pricing objectives are ultimately guided by the organization's overall objectives.

Accepted Answer

A) True 
 B)False

Question 17

Penetration pricing is likely to be utilized when demand for a good or service is highly inelastic.

Accepted Answer

A) True 
 B)False

Question 18

Basing-point pricing scenarios are one of the most favoured systems by buyers who appreciate the equity built into the pricing structure.

Accepted Answer

A) True 
 B)False

Question 19

In the analysis of economic cost and revenue curves, which of the following BEST describes variable costs?

Accepted Answer

A)  They remain stable at any production level within a certain range. 
B)  They can be calculated by dividing the total of fixed costs by the number of units produced. 
C)  They change with the level of production. 
D)  They represent the change in total cost that results from producing one more unit of production. 
A)  They remain stable at any production level within a certain range. 
B)  They can be calculated by dividing the total of fixed costs by the number of units produced. 
C)  They change with the level of production. 
D)  They represent the change in total cost that results from producing one more unit of production.

Question 20

A retailer wants to increase the number of customers shopping in her store.Which of the following has the greatest potential for success?

Accepted Answer

A)  unit pricing 
B)  price flexibility 
C)  prestige pricing 
D)  promotional pricing 
A)  unit pricing 
B)  price flexibility 
C)  prestige pricing 
D)  promotional pricing

Skimming is an effective strategy to use when products are distinctive or have little competition.

What does the demand side of the pricing equation focus on?

A shortcoming of the breakeven model is that it assumes that per-unit variable costs do not change at different levels of operation.

What determines whether a quantity discount is cumulative or noncumulative?

Penetration pricing is often used in a market in which a new product is likely to face strong competition when introduced.

What type of price do large-scale enterprises often have a challenge setting?

When General Motors introduced the Saturn, it priced the SL sports sedan at $2000 less than the Toyota Corolla DLX and $1500 less than comparable Nissan and Honda automobiles.What pricing strategy is this an example of?

Online marketing has added a new opportunity for cannibalization.

What type of price is normally quoted to potential buyers before any discounts or allowances are allowed?

As long as a company can demonstrate that its price discounts and promotional allowances do not restrict competition, the company can avoid any penalties under the Competition Act.

Which of the following is an example of a rebate?

If prices go up and remain high, some products once regarded as necessities may be dismissed as luxuries.

If the target return from the sale of a product is expressed as a percentage of sales, it can be included in the breakeven analysis formula as a variable cost.

Setting the price of a good at a high level so as to discourage its consumption to accomplish a social objective is a strategy often applied by government.

Every online marketer is inherently a global marketer that must understand the internal and external conditions that affect global pricing strategies.

Pricing objectives are ultimately guided by the organization's overall objectives.

Penetration pricing is likely to be utilized when demand for a good or service is highly inelastic.

Basing-point pricing scenarios are one of the most favoured systems by buyers who appreciate the equity built into the pricing structure.

In the analysis of economic cost and revenue curves, which of the following BEST describes variable costs?

A retailer wants to increase the number of customers shopping in her store.Which of the following has the greatest potential for success?

Marketing: The Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

Consumer Behaviour

Business-to-Business (B2B) Marketing

Serving Global Markets

Marketing Research, Decision Support Systems, and Sales Forecasting

Market Segmentation, Targeting, and Positioning

Product and Service Strategies

Developing and Managing Brand and Product Strategies

Marketing Channels and Supply Chain Management

Retailers Wholesalers and Direct Marketers

Integrated Marketing Communications

Advertising and Digital Communications

Personal Selling and Sales Promotion

TB Boone 3Ce final

Filters

Exam 16: Pricing Concepts and Strategies

Skimming is an effective strategy to use when products are distinctive or have little competition.

What does the demand side of the pricing equation focus on?

A shortcoming of the breakeven model is that it assumes that per-unit variable costs do not change at different levels of operation.

What determines whether a quantity discount is cumulative or noncumulative?

Penetration pricing is often used in a market in which a new product is likely to face strong competition when introduced.

What type of price do large-scale enterprises often have a challenge setting?

When General Motors introduced the Saturn, it priced the SL sports sedan at $2000 less than the Toyota Corolla DLX and $1500 less than comparable Nissan and Honda automobiles.What pricing strategy is this an example of?

Online marketing has added a new opportunity for cannibalization.

What type of price is normally quoted to potential buyers before any discounts or allowances are allowed?

As long as a company can demonstrate that its price discounts and promotional allowances do not restrict competition, the company can avoid any penalties under the Competition Act.

Which of the following is an example of a rebate?

If prices go up and remain high, some products once regarded as necessities may be dismissed as luxuries.

If the target return from the sale of a product is expressed as a percentage of sales, it can be included in the breakeven analysis formula as a variable cost.

Setting the price of a good at a high level so as to discourage its consumption to accomplish a social objective is a strategy often applied by government.

Every online marketer is inherently a global marketer that must understand the internal and external conditions that affect global pricing strategies.

Pricing objectives are ultimately guided by the organization's overall objectives.

Penetration pricing is likely to be utilized when demand for a good or service is highly inelastic.

Basing-point pricing scenarios are one of the most favoured systems by buyers who appreciate the equity built into the pricing structure.

In the analysis of economic cost and revenue curves, which of the following BEST describes variable costs?

A retailer wants to increase the number of customers shopping in her store.Which of the following has the greatest potential for success?

Marketing: The Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

Consumer Behaviour

Business-to-Business (B2B) Marketing

Serving Global Markets

Marketing Research, Decision Support Systems, and Sales Forecasting

Market Segmentation, Targeting, and Positioning

Product and Service Strategies

Developing and Managing Brand and Product Strategies

Marketing Channels and Supply Chain Management

Retailers Wholesalers and Direct Marketers

Integrated Marketing Communications

Advertising and Digital Communications

Personal Selling and Sales Promotion

TB Boone 3Ce final

Filters