Question 1

A price of $9.99 is an example of _____.

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

Trade-ins are seldom used in sales of durable goods.

Accepted Answer

A) True 
 B)False

Question 3

A firm that manufactures TVs sells them at prices of $750,$1,000,and $1,250.The manufacturer will return $75,$100,or $125 respectively,by mail,to those who purchase its brand of TV.This reduction in price is an example of a:

Accepted Answer

A)  promotion allowance. 
B)  trade-in. 
C)  rebate. 
D)  quantity discount. 
A)  promotion allowance. 
B)  trade-in. 
C)  rebate. 
D)  quantity discount.

Question 4

Explain psychological pricing and give three examples of this concept.

Accepted Answer

Psychological pricing is based on the id

Question 5

Discuss the benefits a company receives when following a skimming pricing strategy.

Accepted Answer

A skimming pricing strategy:
1)allows a

Question 6

What is a bot? How does it influence the online pricing of products?

Accepted Answer

Bots or shopbots are software programs t

Question 7

Discuss the four major types of pricing policies,as well as flexible alternatives.

Accepted Answer

A pricing policy is a general guideline

Question 8

Controlling demand for a new product through the skimming strategy could save a company from dissatisfied customers by matching supply to the demand.

Accepted Answer

A) True 
 B)False

Question 9

Psychological pricing is based on the premise that:

Accepted Answer

A)  certain prices or price ranges make products more appealing to buyers than others. 
B)  one-price policies appeal to most people and suit mass-marketing programs. 
C)  setting a limited number of prices for a selection of merchandise has a certain appeal. 
D)  lower-than-normal prices as part of recurring marketing initiatives creates demand. 
A)  certain prices or price ranges make products more appealing to buyers than others. 
B)  one-price policies appeal to most people and suit mass-marketing programs. 
C)  setting a limited number of prices for a selection of merchandise has a certain appeal. 
D)  lower-than-normal prices as part of recurring marketing initiatives creates demand.

Question 10

The cost assessed when a product is moved from one profit center within a firm to another 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 11

Most businesses slowly change the amounts they charge customers,even when they clearly recognize strong demand.

Accepted Answer

A) True 
 B)False

Question 12

Consumers have a certain range within which their product-quality perceptions vary directly with price.This range reflects the concept of price:

Accepted Answer

A)  limits. 
B)  variations. 
C)  controls. 
D)  resistance. 
A)  limits. 
B)  variations. 
C)  controls. 
D)  resistance.

Question 13

Product line pricing is the practice of marketing merchandise at variable prices negotiated between buyer and seller.

Accepted Answer

A) True 
 B)False

Question 14

Online marketers run the risk of cannibalization when they:

Accepted Answer

A)  compete with off-price houses on the Internet. 
B)  differently price the same products sold in their retail outlets to be sold online. 
C)  construct new stores alongside their websites. 
D)  hold on to tradition in the face of new technology. 
A)  compete with off-price houses on the Internet. 
B)  differently price the same products sold in their retail outlets to be sold online. 
C)  construct new stores alongside their websites. 
D)  hold on to tradition in the face of new technology.

Question 15

When the price of Cheerios cereal is displayed as 14.7 cents per ounce,this is an example of _____ pricing.

Accepted Answer

A)  odd 
B)  commodity 
C)  unit 
D)  penetration 
A)  odd 
B)  commodity 
C)  unit 
D)  penetration

Question 16

Many government and organizational procurement departments do not pay set prices for their purchases.Instead,they:

Accepted Answer

A)  always negotiate with favored suppliers to get exactly what they want. 
B)  approach the supplying industry and get an average estimate of price from all producers. 
C)  determine the lowest prices available for items that meet specifications through competitive bidding. 
D)  call the federal supply agency and place an order with this government-run factory. 
A)  always negotiate with favored suppliers to get exactly what they want. 
B)  approach the supplying industry and get an average estimate of price from all producers. 
C)  determine the lowest prices available for items that meet specifications through competitive bidding. 
D)  call the federal supply agency and place an order with this government-run factory.

Question 17

A car manufacturer has developed different models of a car to suit the pricing needs of different classes of customers.It offers a low-end version for price conscious customers and luxury cars for high-end customers.This is an example of _____ pricing.

Accepted Answer

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

Question 18

The amount by which the average transportation charge exceeds the actual cost of shipping to a particular destination under postage stamp pricing is called phantom freight.

Accepted Answer

A) True 
 B)False

Question 19

In the absence of other cues:

Accepted Answer

A)  many buyers interpret low prices as signals of high-quality products. 
B)  price offers no clue of a product's quality to prospective purchasers. 
C)  price is an important indicator of product quality to consumers. 
D)  the relationship between price and quality holds true only in declining economies. 
A)  many buyers interpret low prices as signals of high-quality products. 
B)  price offers no clue of a product's quality to prospective purchasers. 
C)  price is an important indicator of product quality to consumers. 
D)  the relationship between price and quality holds true only in declining economies.

Question 20

Almost half of all eBay transactions occur at fixed prices.

Accepted Answer

A) True 
 B)False

Exam 19: Pricing Strategies

A price of $9.99 is an example of _____.

Trade-ins are seldom used in sales of durable goods.

A firm that manufactures TVs sells them at prices of $750,$1,000,and $1,250.The manufacturer will return $75,$100,or $125 respectively,by mail,to those who purchase its brand of TV.This reduction in price is an example of a:

Explain psychological pricing and give three examples of this concept.

Discuss the benefits a company receives when following a skimming pricing strategy.

What is a bot? How does it influence the online pricing of products?

Discuss the four major types of pricing policies,as well as flexible alternatives.

Controlling demand for a new product through the skimming strategy could save a company from dissatisfied customers by matching supply to the demand.

Psychological pricing is based on the premise that:

The cost assessed when a product is moved from one profit center within a firm to another is called _____.

Most businesses slowly change the amounts they charge customers,even when they clearly recognize strong demand.

Consumers have a certain range within which their product-quality perceptions vary directly with price.This range reflects the concept of price:

Product line pricing is the practice of marketing merchandise at variable prices negotiated between buyer and seller.

Online marketers run the risk of cannibalization when they:

When the price of Cheerios cereal is displayed as 14.7 cents per ounce,this is an example of _____ pricing.

Many government and organizational procurement departments do not pay set prices for their purchases.Instead,they:

A car manufacturer has developed different models of a car to suit the pricing needs of different classes of customers.It offers a low-end version for price conscious customers and luxury cars for high-end customers.This is an example of _____ pricing.

The amount by which the average transportation charge exceeds the actual cost of shipping to a particular destination under postage stamp pricing is called phantom freight.

In the absence of other cues:

Almost half of all eBay transactions occur at fixed prices.

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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