Question 1

A(n)_____ involves the use of a high price relative to competitive offerings.

Accepted Answer

A) competitive bidding 
B) penetration pricing strategy 
C) list price 
D) trade discount 
E) price flexibility
F)promotional pricing
G)loss leader
H)cannibalization
I)bundle pricing
J)odd pricing
K)transfer price
L)profit center
M)skimming pricing strategy
N)competitive pricing strategy
O)pricing policy
P)market price
Q)noncumulative quantity discount
R)step out
S)bot
T)cash discount 
A) competitive bidding 
B) penetration pricing strategy 
C) list price 
D) trade discount 
E) price flexibility
F)promotional pricing
G)loss leader
H)cannibalization
I)bundle pricing
J)odd pricing
K)transfer price
L)profit center
M)skimming pricing strategy
N)competitive pricing strategy
O)pricing policy
P)market price
Q)noncumulative quantity discount
R)step out
S)bot
T)cash discount

Question 2

_____ pricing is the pricing strategy of continuously offering low prices rather than relying on short-term price-cutting tactics such as cents-off coupons,rebates,and special sales.

Accepted Answer

A)  Minimum advertised 
B)  Skimming 
C)  Everyday low 
D)  Competitive 
A)  Minimum advertised 
B)  Skimming 
C)  Everyday low 
D)  Competitive

Question 3

"Buy three shock absorbers and get the fourth free," as advertised by an auto repair shop,is an example of _____ pricing.

Accepted Answer

A)  unit 
B)  variable 
C)  promotional 
D)  product-line 
A)  unit 
B)  variable 
C)  promotional 
D)  product-line

Question 4

Retailers achieve opening price point by pricing a quality private-label product above those of manufacturer's brands.

Accepted Answer

A) True 
 B)False

Question 5

In order to recover research and development costs rapidly and earn high initial profits,SenseTV is setting a high price for its plasma TVs.The pricing strategy SenseTV is using is called _____ pricing strategy.

Accepted Answer

A)  market-minus 
B)  skimming 
C)  penetration 
D)  competitive 
A)  market-minus 
B)  skimming 
C)  penetration 
D)  competitive

Question 6

The global status of an industry will influence a firm's pricing strategies in international markets.

Accepted Answer

A) True 
 B)False

Question 7

Firms using a competitive pricing strategy try to reduce the emphasis on price competition by matching other firms' prices and concentrating their own marketing efforts on the product,distribution,and promotion elements of the marketing mix.

Accepted Answer

A) True 
 B)False

Question 8

Cumulative quantity discounts tend to bind customers to a single supply source.

Accepted Answer

A) True 
 B)False

Question 9

Since it involves the use of a high price relative to prices of competing products or services,the skimming pricing strategy is sometimes referred to as _____ pricing.

Accepted Answer

A)  penetration 
B)  competitive 
C)  market-plus 
D)  functional 
A)  penetration 
B)  competitive 
C)  market-plus 
D)  functional

Question 10

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)  Promotional pricing 
B)  Price flexibility 
C)  Prestige pricing 
D)  Unit pricing 
A)  Promotional pricing 
B)  Price flexibility 
C)  Prestige pricing 
D)  Unit pricing

Question 11

Aken Laboratories,a chemical manufacturer for laboratory use,exports its products to various countries in South Asia.The company does not alter the prices of its products in these countries.Aken is adopting a _____ pricing strategy.

Accepted Answer

A)  market-differentiated 
B)  variable 
C)  standard worldwide 
D)  dual 
A)  market-differentiated 
B)  variable 
C)  standard worldwide 
D)  dual

Question 12

The price normally quoted to potential buyers before any discounts or allowances are allowed is called the _____ price.

Accepted Answer

A)  market 
B)  list 
C)  cash 
D)  trade 
A)  market 
B)  list 
C)  cash 
D)  trade

Question 13

Bots are search programs that hunt the Web for a specific vendor and then print out a list of products and their prices at that source.

Accepted Answer

A) True 
 B)False

Question 14

Everyday low pricing is a strategy devoted to continuous low prices as opposed to:

Accepted Answer

A)  seasonal changes in prices based on current demand. 
B)  purely cost-based prices that vary as the manufacturer's costs vary. 
C)  relying on short-term price-cutting tactics such as cents-off coupons, rebates, and special sales. 
D)  prices that are set on a weekly or monthly basis in reaction to competitors' actions. 
A)  seasonal changes in prices based on current demand. 
B)  purely cost-based prices that vary as the manufacturer's costs vary. 
C)  relying on short-term price-cutting tactics such as cents-off coupons, rebates, and special sales. 
D)  prices that are set on a weekly or monthly basis in reaction to competitors' actions.

Question 15

A negative cash discount is an attempt by sellers to improve their liquidity positions,reduce their bad-debt losses,and cut collection expenses.

Accepted Answer

A) True 
 B)False

Question 16

When the list price of a product is discounted by the value of a used product that is turned in at the time of sale,the transaction is called a sale with a trade-in.

Accepted Answer

A) True 
 B)False

Question 17

A(n)_____ is a general guideline that reflects marketing objectives and influences specific pricing decisions.

Accepted Answer

A)  MAP 
B)  pricing policy 
C)  leader pricing strategy 
D)  EDLP 
A)  MAP 
B)  pricing policy 
C)  leader pricing strategy 
D)  EDLP

Question 18

A price of $ 9.97 is less likely to appeal to customers than $ 9.95 or $ 9.99.

Accepted Answer

A) True 
 B)False

Question 19

Zone pricing completely eliminates phantom freight.

Accepted Answer

A) True 
 B)False

Question 20

Odd pricing originated as a way to force clerks to make change,thus serving as a cash-control device.

Accepted Answer

A) True 
 B)False

Exam 19: Pricing Strategies

A(n)_____ involves the use of a high price relative to competitive offerings.

_____ pricing is the pricing strategy of continuously offering low prices rather than relying on short-term price-cutting tactics such as cents-off coupons,rebates,and special sales.

"Buy three shock absorbers and get the fourth free," as advertised by an auto repair shop,is an example of _____ pricing.

Retailers achieve opening price point by pricing a quality private-label product above those of manufacturer's brands.

In order to recover research and development costs rapidly and earn high initial profits,SenseTV is setting a high price for its plasma TVs.The pricing strategy SenseTV is using is called _____ pricing strategy.

The global status of an industry will influence a firm's pricing strategies in international markets.

Firms using a competitive pricing strategy try to reduce the emphasis on price competition by matching other firms' prices and concentrating their own marketing efforts on the product,distribution,and promotion elements of the marketing mix.

Cumulative quantity discounts tend to bind customers to a single supply source.

Since it involves the use of a high price relative to prices of competing products or services,the skimming pricing strategy is sometimes referred to as _____ pricing.

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

Aken Laboratories,a chemical manufacturer for laboratory use,exports its products to various countries in South Asia.The company does not alter the prices of its products in these countries.Aken is adopting a _____ pricing strategy.

The price normally quoted to potential buyers before any discounts or allowances are allowed is called the _____ price.

Bots are search programs that hunt the Web for a specific vendor and then print out a list of products and their prices at that source.

Everyday low pricing is a strategy devoted to continuous low prices as opposed to:

A negative cash discount is an attempt by sellers to improve their liquidity positions,reduce their bad-debt losses,and cut collection expenses.

When the list price of a product is discounted by the value of a used product that is turned in at the time of sale,the transaction is called a sale with a trade-in.

A(n)_____ is a general guideline that reflects marketing objectives and influences specific pricing decisions.

A price of $ 9.97 is less likely to appeal to customers than $ 9.95 or $ 9.99.

Zone pricing completely eliminates phantom freight.

Odd pricing originated as a way to force clerks to make change,thus serving as a cash-control device.

Marketing: The Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, Ethics, and Social Responsibility

Social Media: Living in the Connected World

E-Business: Managing the Customer Experience

Consumer Behavior

Business-to-Business (B2B)Marketing

Global Marketing

Market Segmentation, Targeting, and Positioning

Marketing Research and Sales Forecasting

Relationship Marketing and Customer Relationship Management (CRM)

Product and Service Strategies

Developing and Managing Brand and Product Categories

Marketing Channels and Supply Chain Management

Retailers, Wholesalers, and Direct Marketers

Integrated Marketing Communications, Advertising, and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Your Career in Marketing

Developing an Effective Marketing Plan

Financial Analysis in Marketing

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