Question 1

Many government and organizational procurement departments do not pay set prices for their purchases.

Accepted Answer

A) True 
 B)False

Question 2

Maintaining an artificially low price for a period of time leads consumers to expect it as a customary feature of the product.

Accepted Answer

A) True 
 B)False

Question 3

What are allowances? What are the major categories of allowances?

Accepted Answer

Allowances are specified deductions from

Question 4

A(n)_____ is designed to deemphasize price as a competitive variable by pricing a good or service at the level of comparable 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 5

The price a consumer or marketing intermediary actually pays for a product after subtracting any discounts,allowances,or rebates from the list price is called _____ price.

Accepted Answer

A)  retail 
B)  market 
C)  functional 
D)  sticker 
A)  retail 
B)  market 
C)  functional 
D)  sticker

Question 6

_____ pricing is a pricing policy in which products are offered to consumers at less than cost to attract them to stores in the hope that they will buy other merchandise at regular prices.

Accepted Answer

A)  Skimming 
B)  Loss leader 
C)  Odd 
D)  Variable 
A)  Skimming 
B)  Loss leader 
C)  Odd 
D)  Variable

Question 7

The strategy of using a relative low entry price compared with competitive offerings to secure market acceptance is called a(n)_____.

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 8

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 9

Most buyers prefer basing-point pricing policies compared to other policies used by sellers to handle transportation costs.

Accepted Answer

A) True 
 B)False

Question 10

A refund of a portion of the purchase price usually granted by the product's manufacturer to consumers is known as a _____.

Accepted Answer

A)  cash discount 
B)  rebate 
C)  functional discount 
D)  trade-in 
A)  cash discount 
B)  rebate 
C)  functional discount 
D)  trade-in

Question 11

If foreign marketing costs are so low they do not impact overall costs,the pricing strategy to recommend is:

Accepted Answer

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

Question 12

A pricing policy that assumes that some prices are more appealing than others is known as _____ pricing.

Accepted Answer

A)  leader 
B)  product-line 
C)  psychological 
D)  prestige 
A)  leader 
B)  product-line 
C)  psychological 
D)  prestige

Question 13

The price reduction offered to a customer,business user,or marketing intermediary in return for prompt payment of a bill is called a _____ discount.

Accepted Answer

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

Question 14

Which of the following is an example of a rebate offered to buyers?

Accepted Answer

A)  Getting $25 off a $100 purchase on exchange of a used product. 
B)  Getting $3 off a $100 purchase for paying the bill within 10 days. 
C)  Getting $5 returned by mail after a $100 purchase for making the purchase. 
D)  Getting $100 off a $1,000 purchase for buying in bulk quantities. 
A)  Getting $25 off a $100 purchase on exchange of a used product. 
B)  Getting $3 off a $100 purchase for paying the bill within 10 days. 
C)  Getting $5 returned by mail after a $100 purchase for making the purchase. 
D)  Getting $100 off a $1,000 purchase for buying in bulk quantities.

Question 15

Buyers and sellers often set purchase terms using negotiated contracts when:

Accepted Answer

A)  only one supplier offers the desired product. 
B)  there are multiple interested parties. 
C)  research and development work is not necessary. 
D)  purchases exceed $5,000. 
A)  only one supplier offers the desired product. 
B)  there are multiple interested parties. 
C)  research and development work is not necessary. 
D)  purchases exceed $5,000.

Question 16

When General Motors introduced the Saturn,it priced the SL sports sedan at $2,000 less than the Toyota Corolla DLX and $1,500 less than comparable Nissan and Honda automobiles.This is an example of the _____ pricing strategy.

Accepted Answer

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

Question 17

A leader merchandise is a product offered by retailers to customers at less than cost to attract them to stores.

Accepted Answer

A) True 
 B)False

Question 18

_____ is the loss of sales of an existing product due to competition from a new product in the same line.

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 19

A _____ pricing strategy permits marketers to control demand in the introductory stages of a product's life cycle and then adjust productive capacity to match changing demand.

Accepted Answer

A)  penetration 
B)  value-added 
C)  skimming 
D)  competitive 
A)  penetration 
B)  value-added 
C)  skimming 
D)  competitive

Question 20

A pricing policy is a general guideline that reflects marketing objectives and influences specific pricing decisions.

Accepted Answer

A) True 
 B)False

Exam 19: Pricing Strategies

Many government and organizational procurement departments do not pay set prices for their purchases.

Maintaining an artificially low price for a period of time leads consumers to expect it as a customary feature of the product.

What are allowances? What are the major categories of allowances?

A(n)_____ is designed to deemphasize price as a competitive variable by pricing a good or service at the level of comparable offerings.

The price a consumer or marketing intermediary actually pays for a product after subtracting any discounts,allowances,or rebates from the list price is called _____ price.

_____ pricing is a pricing policy in which products are offered to consumers at less than cost to attract them to stores in the hope that they will buy other merchandise at regular prices.

The strategy of using a relative low entry price compared with competitive offerings to secure market acceptance is called a(n)_____.

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

Most buyers prefer basing-point pricing policies compared to other policies used by sellers to handle transportation costs.

A refund of a portion of the purchase price usually granted by the product's manufacturer to consumers is known as a _____.

If foreign marketing costs are so low they do not impact overall costs,the pricing strategy to recommend is:

A pricing policy that assumes that some prices are more appealing than others is known as _____ pricing.

The price reduction offered to a customer,business user,or marketing intermediary in return for prompt payment of a bill is called a _____ discount.

Which of the following is an example of a rebate offered to buyers?

Buyers and sellers often set purchase terms using negotiated contracts when:

When General Motors introduced the Saturn,it priced the SL sports sedan at $2,000 less than the Toyota Corolla DLX and $1,500 less than comparable Nissan and Honda automobiles.This is an example of the _____ pricing strategy.

A leader merchandise is a product offered by retailers to customers at less than cost to attract them to stores.

_____ is the loss of sales of an existing product due to competition from a new product in the same line.

A _____ pricing strategy permits marketers to control demand in the introductory stages of a product's life cycle and then adjust productive capacity to match changing demand.

A pricing policy is a general guideline that reflects marketing objectives and influences specific pricing decisions.

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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