Question 1

A firm that permits variable prices for different customers is adopting _____.

Accepted Answer

A)  promotional pricing 
B)  price flexibility 
C)  odd pricing 
D)  product-line pricing 
A)  promotional pricing 
B)  price flexibility 
C)  odd pricing 
D)  product-line pricing

Question 2

Marketers who have adopted a product-line pricing strategy have one major advantage in that they have no difficulty making price changes on individual items.

Accepted Answer

A) True 
 B)False

Question 3

Few businesses want the distinction of being the first to charge higher prices.

Accepted Answer

A) True 
 B)False

Question 4

Explain everyday low pricing.

Accepted Answer

Everyday low pricing (EDLP)is a pricing

Question 5

Which of the following is one of the most important aspects of a government or organizational procurement?

Accepted Answer

A)  The bidder's profit on the product 
B)  The payment schedule for the product 
C)  Provisions for deflation or inflation 
D)  Development of accurate descriptions of products to buy. 
A)  The bidder's profit on the product 
B)  The payment schedule for the product 
C)  Provisions for deflation or inflation 
D)  Development of accurate descriptions of products to buy.

Question 6

Consumers today perceive that,within price limits,there is:

Accepted Answer

A)  a need for discounts and incentives. 
B)  obvious opportunity for psychological pricing. 
C)  a direct relationship between the quality and price of a product. 
D)  no perceivable difference in major product brands. 
A)  a need for discounts and incentives. 
B)  obvious opportunity for psychological pricing. 
C)  a direct relationship between the quality and price of a product. 
D)  no perceivable difference in major product brands.

Question 7

Charles Schwab,a trading company,will face the risk of cannibalization from its e-tail channel e.Schwab if:

Accepted Answer

A)  it attempts to lure customers with the Schwab database. 
B)  it branches out into mutual funds and tax-deferred investments. 
C)  it makes price cuts and creates competition with the parent company. 
D)  it allots all its best personnel to work at the online firm. 
A)  it attempts to lure customers with the Schwab database. 
B)  it branches out into mutual funds and tax-deferred investments. 
C)  it makes price cuts and creates competition with the parent company. 
D)  it allots all its best personnel to work at the online firm.

Question 8

What are the disadvantages of promotional pricing?

Accepted Answer

Marketers should anticipate two potentia

Question 9

Cumulative quantity discounts are one-time reductions in list prices.

Accepted Answer

A) True 
 B)False

Question 10

Marketers today are more savvy about integrating marketing channels and standardizing pricing across channels.

Accepted Answer

A) True 
 B)False

Question 11

In a recent special offer,any customer who brought in a toaster oven,working or not,was given a $50 credit toward the purchase of a new Amana microwave oven.This is an example of a:

Accepted Answer

A)  functional discount. 
B)  promotional allowance. 
C)  cash discount. 
D)  trade-in. 
A)  functional discount. 
B)  promotional allowance. 
C)  cash discount. 
D)  trade-in.

Question 12

Large-scale enterprises often have a dilemma with setting the _____ price,which is the price they charge themselves when sending goods from one company profit center to another.

Accepted Answer

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

Question 13

A functional discount is a payment to a channel member or a buyer for performing marketing functions.

Accepted Answer

A) True 
 B)False

Question 14

The amount a consumer actually pays for a product is called _____.

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

The process of inviting potential suppliers to quote prices on proposed purchases or contracts is known as _____.

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 16

Discuss the three alternative strategies for pricing exports.

Accepted Answer

1)Standard worldwide pricing involves ch

Question 17

Which of the following is a major disadvantage associated with the skimming pricing strategy?

Accepted Answer

A)  It is not effective for higher-end goods. 
B)  It is not effective in recovering the high research and development costs. 
C)  It attracts competition as potential competitors enter into the market observing the high financial returns obtained by innovative firms. 
D)  It leads to fulfillment problems if the demand for the product outstrips the firm's production capacity. 
A)  It is not effective for higher-end goods. 
B)  It is not effective in recovering the high research and development costs. 
C)  It attracts competition as potential competitors enter into the market observing the high financial returns obtained by innovative firms. 
D)  It leads to fulfillment problems if the demand for the product outstrips the firm's production capacity.

Question 18

A(n)_____ is a payment to a channel member or buyer for performing marketing functions.

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

Makson's,a manufacturer of fertilizers and pesticides used for agricultural purposes,modifies the prices of its products exported to foreign markets to include the marketing costs in foreign markets but maintains the same price in all its domestic markets.Its products are more expensive in international markets compared to its domestic market where it is sold at a lower price.This pricing strategy used by Makson's to differently price its products is known as:

Accepted Answer

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

Question 20

If a manufacturer offered an intermediary a percentage discount off the list price of products it handled in exchange for performing certain wholesaling activities,this would be classified as a:

Accepted Answer

A)  cash rebate. 
B)  list price. 
C)  cumulative discount. 
D)  trade discount. 
A)  cash rebate. 
B)  list price. 
C)  cumulative discount. 
D)  trade discount.

Exam 19: Pricing Strategies

A firm that permits variable prices for different customers is adopting _____.

Marketers who have adopted a product-line pricing strategy have one major advantage in that they have no difficulty making price changes on individual items.

Few businesses want the distinction of being the first to charge higher prices.

Explain everyday low pricing.

Which of the following is one of the most important aspects of a government or organizational procurement?

Consumers today perceive that,within price limits,there is:

Charles Schwab,a trading company,will face the risk of cannibalization from its e-tail channel e.Schwab if:

What are the disadvantages of promotional pricing?

Cumulative quantity discounts are one-time reductions in list prices.

Marketers today are more savvy about integrating marketing channels and standardizing pricing across channels.

In a recent special offer,any customer who brought in a toaster oven,working or not,was given a $50 credit toward the purchase of a new Amana microwave oven.This is an example of a:

Large-scale enterprises often have a dilemma with setting the _____ price,which is the price they charge themselves when sending goods from one company profit center to another.

A functional discount is a payment to a channel member or a buyer for performing marketing functions.

The amount a consumer actually pays for a product is called _____.

The process of inviting potential suppliers to quote prices on proposed purchases or contracts is known as _____.

Discuss the three alternative strategies for pricing exports.

Which of the following is a major disadvantage associated with the skimming pricing strategy?

A(n)_____ is a payment to a channel member or buyer for performing marketing functions.

If a manufacturer offered an intermediary a percentage discount off the list price of products it handled in exchange for performing certain wholesaling activities,this would be classified as a:

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

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Global Marketing

Market Segmentation, Targeting, and Positioning

Marketing Research and Sales Forecasting

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Developing and Managing Brand and Product Categories

Marketing Channels and Supply Chain Management

Retailers, Wholesalers, and Direct Marketers

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Personal Selling and Sales Promotion

Pricing Concepts

Your Career in Marketing

Developing an Effective Marketing Plan

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