Question 1

Business and government purchasers often legally enter into contracts with favored suppliers instead of using competitive bidding.

Accepted Answer

A) True 
 B)False

Question 2

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

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 3

ADS stores,a supermarket chain,receives discounts from its suppliers for the bulk purchases of the merchandise at its stores.This is an example of a _____ discount.

Accepted Answer

A)  cash 
B)  trade 
C)  quantity 
D)  functional 
A)  cash 
B)  trade 
C)  quantity 
D)  functional

Question 4

An office supply wholesaler offers a 15 percent discount for retailers who purchase goods worth $ 20,000 over a period of nine months and a 20 percent discount for purchases worth $ 25,000 during the same time period.This is an example of a _____ discount.

Accepted Answer

A)  trade 
B)  noncumulative quantity 
C)  cumulative quantity 
D)  recurring 
A)  trade 
B)  noncumulative quantity 
C)  cumulative quantity 
D)  recurring

Question 5

What is bundle pricing? Give an example.

Accepted Answer

Bundle pricing involves offering two or

Question 6

Transfer pricing typically is a simple and standardized process in most organizations.

Accepted Answer

A) True 
 B)False

Question 7

Marketers offer rebates in order to:

Accepted Answer

A)  cover the costs spent by the retailers on advertising the products. 
B)  reward the retailer for prompt payment of bills. 
C)  reward a retailer who agrees not to advertise products below set prices. 
D)  reduce the price paid for a product by customers. 
A)  cover the costs spent by the retailers on advertising the products. 
B)  reward the retailer for prompt payment of bills. 
C)  reward a retailer who agrees not to advertise products below set prices. 
D)  reduce the price paid for a product by customers.

Question 8

One-price policies are more likely to be applied in marketing programs based on individual bargaining.

Accepted Answer

A) True 
 B)False

Question 9

The global pricing strategy that allows the greatest flexibility in setting prices to reflect local marketplace conditions is:

Accepted Answer

A)  standard worldwide pricing. 
B)  dual pricing. 
C)  market-differentiated pricing. 
D)  everyday low pricing. 
A)  standard worldwide pricing. 
B)  dual pricing. 
C)  market-differentiated pricing. 
D)  everyday low pricing.

Question 10

Firms that price their products differently for online purchases face the risk of cannibalization.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following pricing policies began to be widely used during the late 1960s to make price comparisons more convenient between products packaged in different sizes?

Accepted Answer

A)  Odd pricing 
B)  Promotional pricing 
C)  Unit pricing 
D)  Product-line pricing 
A)  Odd pricing 
B)  Promotional pricing 
C)  Unit pricing 
D)  Product-line pricing

Question 12

A _____ pricing strategy helps manufacturers to distinguish their high-end products from similar products of their competitors.

Accepted Answer

A)  skimming 
B)  market share 
C)  competitive 
D)  penetration 
A)  skimming 
B)  market share 
C)  competitive 
D)  penetration

Question 13

An example of odd pricing would be:

Accepted Answer

A)  a buy-two-get-one-free promotion. 
B)  selling a radar detector for $129.99 instead of $130. 
C)  subtracting trade-ins from the list price. 
D)  rebates that lower total price. 
A)  a buy-two-get-one-free promotion. 
B)  selling a radar detector for $129.99 instead of $130. 
C)  subtracting trade-ins from the list price. 
D)  rebates that lower total price.

Question 14

A(n)_____ is a part of an organization to which revenue and controllable costs can be assigned.

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 15

A dual pricing strategy provides more flexibility to set prices with changing market conditions than a market-differentiated pricing strategy.

Accepted Answer

A) True 
 B)False

Question 16

Skimming pricing strategies are also known as "market-plus pricing."

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true of products priced as "FOB origin"?

Accepted Answer

A)  The purchase of these products permits the buyers to subtract transportation expenses from their bills. 
B)  The transportation costs of these products are uniformly distributed among all channel members including the final purchaser. 
C)  The legal title and responsibility of these products lies with the seller until it is delivered to the buyer. 
D)  The buyer pays all the freight charges to transport the product from the manufacturer's loading dock. 
A)  The purchase of these products permits the buyers to subtract transportation expenses from their bills. 
B)  The transportation costs of these products are uniformly distributed among all channel members including the final purchaser. 
C)  The legal title and responsibility of these products lies with the seller until it is delivered to the buyer. 
D)  The buyer pays all the freight charges to transport the product from the manufacturer's loading dock.

Question 18

Everyday low pricing is a pricing strategy that relies on short-term cost-cutting tactics such as coupons and rebates.

Accepted Answer

A) True 
 B)False

Question 19

What are the different factors that influence global pricing strategies?

Accepted Answer

A wide variety of internal and external

Question 20

Define cannibalization and give an example.

Accepted Answer

Cannibalization is the loss of sales of

Exam 19: Pricing Strategies

Business and government purchasers often legally enter into contracts with favored suppliers instead of using competitive bidding.

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

ADS stores,a supermarket chain,receives discounts from its suppliers for the bulk purchases of the merchandise at its stores.This is an example of a _____ discount.

An office supply wholesaler offers a 15 percent discount for retailers who purchase goods worth $ 20,000 over a period of nine months and a 20 percent discount for purchases worth $ 25,000 during the same time period.This is an example of a _____ discount.

What is bundle pricing? Give an example.

Transfer pricing typically is a simple and standardized process in most organizations.

Marketers offer rebates in order to:

One-price policies are more likely to be applied in marketing programs based on individual bargaining.

The global pricing strategy that allows the greatest flexibility in setting prices to reflect local marketplace conditions is:

Firms that price their products differently for online purchases face the risk of cannibalization.

Which of the following pricing policies began to be widely used during the late 1960s to make price comparisons more convenient between products packaged in different sizes?

A _____ pricing strategy helps manufacturers to distinguish their high-end products from similar products of their competitors.

An example of odd pricing would be:

A(n)_____ is a part of an organization to which revenue and controllable costs can be assigned.

A dual pricing strategy provides more flexibility to set prices with changing market conditions than a market-differentiated pricing strategy.

Skimming pricing strategies are also known as "market-plus pricing."

Which of the following is true of products priced as "FOB origin"?

Everyday low pricing is a pricing strategy that relies on short-term cost-cutting tactics such as coupons and rebates.

What are the different factors that influence global pricing strategies?

Define cannibalization and give an example.

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

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