Question 1

Basing-point pricing policy always calculates the freight charges from the point or location from which the goods are actually shipped.

Accepted Answer

A) True 
 B)False

Question 2

Most price structures are built around list prices.

Accepted Answer

A) True 
 B)False

Question 3

A _____ is the amount by which the average transportation charge exceeds the actual cost of shipping.

Accepted Answer

A)  rebate 
B)  list price 
C)  phantom freight 
D)  transfer price 
A)  rebate 
B)  list price 
C)  phantom freight 
D)  transfer price

Question 4

Marketers implement leader pricing policies to avoid violating maximum-markup regulations and to earn a maximum return on promotional sales.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following pricing approaches is best suited for a company that is expanding into the global market and will be facing rather low foreign marketing costs?

Accepted Answer

A)  Standard worldwide price 
B)  Dual pricing 
C)  Market-differentiated pricing 
D)  Transfer pricing 
A)  Standard worldwide price 
B)  Dual pricing 
C)  Market-differentiated pricing 
D)  Transfer pricing

Question 6

Exporters who implement dual pricing policies can make profit by selling any product in international markets.

Accepted Answer

A) True 
 B)False

Question 7

Penetration pricing works best for goods or services:

Accepted Answer

A)  that offer a unique advantage over competitors' brands. 
B)  that are characterized by highly elastic demand. 
C)  that face little or no competition in the market place. 
D)  that involve high production and operational costs. 
A)  that offer a unique advantage over competitors' brands. 
B)  that are characterized by highly elastic demand. 
C)  that face little or no competition in the market place. 
D)  that involve high production and operational costs.

Question 8

An internal transfer price is the price for moving goods between profit centers in large-scale organizations.

Accepted Answer

A) True 
 B)False

Question 9

The payment offered to a channel member for performing marketing functions is called a _____.

Accepted Answer

A)  cash discount 
B)  trade discount 
C)  quantity discount 
D)  rebate 
A)  cash discount 
B)  trade discount 
C)  quantity discount 
D)  rebate

Question 10

The Internet has provided more power to customers to control the prices of goods and services.

Accepted Answer

A) True 
 B)False

Question 11

Unit pricing began to be widely used during the late 1960s to make price comparisons more convenient while comparing the true prices of products packaged in different sizes.

Accepted Answer

A) True 
 B)False

Question 12

What are the problems associated with product-line pricing?

Accepted Answer

A potential problem with product-line pr

Question 13

Step outs occur when a company refuses to participate in price escalation between competitors.

Accepted Answer

A) True 
 B)False

Question 14

_____ is a pricing policy permitting variable services for goods and services.

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

Which of the following is true of promotional pricing?

Accepted Answer

A)  It promotes goods and services at specific price ranges based on the belief that certain prices are more appealing to consumers. 
B)  It uses lower-than-normal price as a temporary component in the selling strategy. 
C)  It sets a high price for products that offer unique potential ability. 
D)  It uses extensive promotional allowances to get channel members to promote the product. 
A)  It promotes goods and services at specific price ranges based on the belief that certain prices are more appealing to consumers. 
B)  It uses lower-than-normal price as a temporary component in the selling strategy. 
C)  It sets a high price for products that offer unique potential ability. 
D)  It uses extensive promotional allowances to get channel members to promote the product.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

A one-time reduction in list price typically offered at the time of sale is referred to as a(n):

Accepted Answer

A)  allowance. 
B)  rebate. 
C)  cumulative discount. 
D)  noncumulative discount. 
A)  allowance. 
B)  rebate. 
C)  cumulative discount. 
D)  noncumulative discount.

Question 18

Citibank offers an opportunity for credit card customers to transfer balances from competitive cards,and pay low financing for a six-month period.After the introductory period is over,the rate will increase to the normal percentage.Citibank's strategy is to penetrate the market and obtain increased market share.

Accepted Answer

A) True 
 B)False

Question 19

While price offers a dramatic means of achieving competitive advantage,it is the most difficult marketing variable for competitors to match.

Accepted Answer

A) True 
 B)False

Question 20

Bundle pricing is more prevalent in the telecommunications industry compared to other industries.

Accepted Answer

A) True 
 B)False

Exam 19: Pricing Strategies

Basing-point pricing policy always calculates the freight charges from the point or location from which the goods are actually shipped.

Most price structures are built around list prices.

A _____ is the amount by which the average transportation charge exceeds the actual cost of shipping.

Marketers implement leader pricing policies to avoid violating maximum-markup regulations and to earn a maximum return on promotional sales.

Which of the following pricing approaches is best suited for a company that is expanding into the global market and will be facing rather low foreign marketing costs?

Exporters who implement dual pricing policies can make profit by selling any product in international markets.

Penetration pricing works best for goods or services:

An internal transfer price is the price for moving goods between profit centers in large-scale organizations.

The payment offered to a channel member for performing marketing functions is called a _____.

The Internet has provided more power to customers to control the prices of goods and services.

Unit pricing began to be widely used during the late 1960s to make price comparisons more convenient while comparing the true prices of products packaged in different sizes.

What are the problems associated with product-line pricing?

Step outs occur when a company refuses to participate in price escalation between competitors.

_____ is a pricing policy permitting variable services for goods and services.

Which of the following is true of promotional pricing?

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

A one-time reduction in list price typically offered at the time of sale is referred to as a(n):

While price offers a dramatic means of achieving competitive advantage,it is the most difficult marketing variable for competitors to match.

Bundle pricing is more prevalent in the telecommunications industry compared to other industries.

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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