Question 1

_____ is charging different prices to maximize revenue for a set amount of capacity at any given time.

Accepted Answer

A) Demand backward pricing 
B) Penetrating pricing 
C) Yield management pricing 
D) Skimming pricing 
A) Demand backward pricing 
B) Penetrating pricing 
C) Yield management pricing 
D) Skimming pricing

Question 2

_____ is a competition-based method of pricing where tradition, a standardized channel of distribution, or other competitive factors dictate the price of a product.

Accepted Answer

A) Standard markup pricing 
B) Cost-plus-percentage-of-cost pricing 
C) Customary pricing 
D) Experience curve pricing 
A) Standard markup pricing 
B) Cost-plus-percentage-of-cost pricing 
C) Customary pricing 
D) Experience curve pricing

Question 3

Often, a firm that is selling not just a single product but a line of products may price them at a number of different specific pricing points, which is called odd-even pricing.

Accepted Answer

A) True 
 B)False

Question 4

Odd-even pricing is most closely related to:

Accepted Answer

A) retailers' perceptions of price. 
B) customers' perceptions of price. 
C) wholesalers' markups. 
D) manufacturers' costs. 
A) retailers' perceptions of price. 
B) customers' perceptions of price. 
C) wholesalers' markups. 
D) manufacturers' costs.

Question 5

Direct labour and direct materials used in producing an item are examples of fixed costs.

Accepted Answer

A) True 
 B)False

Question 6

H&G Co.Ltd.has used a high initial price for its newly launched cellphones.The company hopes to recover its research and development costs with this pricing.This is an example of a _____.

Accepted Answer

A) price lining strategy 
B) price skimming strategy 
C) yield management pricing strategy 
D) prestige pricing strategy 
A) price lining strategy 
B) price skimming strategy 
C) yield management pricing strategy 
D) prestige pricing strategy

Question 7

Nature's Taste, a manufacturer of floral jellies made from pansies, honeysuckle, and wisteria, prices its jellies by adding 30 percent to the cost of everything that goes into making the jellies including salaries, jars, sugar, and pectin.Which of the following pricing methods is being used here?

Accepted Answer

A) target return-on-sales pricing 
B) flexible pricing 
C) yield management pricing 
D) standard markup pricing 
A) target return-on-sales pricing 
B) flexible pricing 
C) yield management pricing 
D) standard markup pricing

Question 8

Which of the following is true of price skimming strategy?

Accepted Answer

A) A company uses a price skimming strategy to combat competitive threat. 
B) Price skimming strategy helps a company encourage rapid acceptance of an innovation. 
C) With a price skimming strategy, a company can recover research and development costs. 
D) When a company uses a low price to enter the market, it is referred to as a price skimming strategy. 
A) A company uses a price skimming strategy to combat competitive threat. 
B) Price skimming strategy helps a company encourage rapid acceptance of an innovation. 
C) With a price skimming strategy, a company can recover research and development costs. 
D) When a company uses a low price to enter the market, it is referred to as a price skimming strategy.

Question 9

Which of the following statements is true with respect to setting the final price?

Accepted Answer

A) One should consider that demand is unrelated to price. 
B) The only policy used to set list prices is the one-price policy. 
C) The only policy used to set list prices is the flexible-price policy. 
D) The step of setting the list or quoted price follows selecting an approximate price level. 
A) One should consider that demand is unrelated to price. 
B) The only policy used to set list prices is the one-price policy. 
C) The only policy used to set list prices is the flexible-price policy. 
D) The step of setting the list or quoted price follows selecting an approximate price level.

Question 10

Rather than billing clients by the hour, a group of lawyers and their clients agree on a fixed fee based on expected expenses plus a profit for the law firm.Which pricing method are they using?

Accepted Answer

A) target pricing 
B) cost-plus pricing 
C) customary pricing 
D) experience curve pricing 
A) target pricing 
B) cost-plus pricing 
C) customary pricing 
D) experience curve pricing

Question 11

Kate & Hark's, a custom kitchen cabinet store, has received a bulk order for the supply of 400 cabinets.The variable cost incurred is $200 per unit and the fixed cost is $44,000. If a target profit of $10,000 on a volume of 400 cabinets is desired, what price should be charged for a typical cabinet section?

Accepted Answer

A) $335 
B) $310 
C) $455 
D) $398 
A) $335 
B) $310 
C) $455 
D) $398

Question 12

"Get double Heped!! Buy two for the price of one!!!" is a promotion by Hep & Happy, a retailer of women's slim fit jeans.The retailer has, however, doubled the price charged for a pair of slim fit jeans.This is an example of double ticketing.

Accepted Answer

A) True 
 B)False

Question 13

Value pricing is the:

Accepted Answer

A) ratio of perceived benefits to price. 
B) practice of increasing a product's benefits while maintaining or decreasing price. 
C) practice of simultaneously increasing product and service benefits and increasing price. 
D) ratio of price to perceived benefits. 
A) ratio of perceived benefits to price. 
B) practice of increasing a product's benefits while maintaining or decreasing price. 
C) practice of simultaneously increasing product and service benefits and increasing price. 
D) ratio of price to perceived benefits.

Question 14

Skimming pricing is a suitable demand-oriented approach when a firm is trying to attract price-sensitive customers.

Accepted Answer

A) True 
 B)False

Question 15

Free-on-board (FOB) origin pricing is a method of pricing where the:

Accepted Answer

A) title of goods remains with the manufacturer until sold to the ultimate consumer. 
B) title of goods passes to the buyer upon arrival at the final destination. 
C) title of goods passes to the buyer at the point of loading. 
D) price the seller sets includes all transportation costs. 
A) title of goods remains with the manufacturer until sold to the ultimate consumer. 
B) title of goods passes to the buyer upon arrival at the final destination. 
C) title of goods passes to the buyer at the point of loading. 
D) price the seller sets includes all transportation costs.

Question 16

Walk Easy Inc., a manufacturer of heel replacement kits for men's shoes, incurs fixed costs of $6 million and unit variable cost of $5. Walk Easy Inc.fixes a sale target of 700,000 heel repair kits.What price must be charged to achieve a profit of $2.5 million?

Accepted Answer

A) $3.58 
B) $7.58 
C) $12.15 
D) $17.14 
A) $3.58 
B) $7.58 
C) $12.15 
D) $17.14

Question 17

Walk Easy Inc., a manufacturer of heel replacement kits for men's shoes, incurs fixed costs of $6 million and unit variable cost of $5. If Walk Easy Inc.charges $15 per kit, how many kits must be sold to break even?

Accepted Answer

A) 300,000 
B) 400,000 
C) 600,000 
D) 1,200,000 
A) 300,000 
B) 400,000 
C) 600,000 
D) 1,200,000

Question 18

The practice of exchanging goods and services for other goods and services rather than for money is called _____.

Accepted Answer

A) bundle pricing 
B) pricing substitution 
C) barter 
D) value pricing 
A) bundle pricing 
B) pricing substitution 
C) barter 
D) value pricing

Question 19

Which of the following statements about penetration pricing is true?

Accepted Answer

A) Penetration pricing is a profit-oriented approach to pricing. 
B) Penetration pricing is a cost-based pricing method. 
C) Penetration pricing encourages competitors to enter a market. 
D) A penetration pricing strategy is more effective in a marketplace with price-sensitive consumers. 
A) Penetration pricing is a profit-oriented approach to pricing. 
B) Penetration pricing is a cost-based pricing method. 
C) Penetration pricing encourages competitors to enter a market. 
D) A penetration pricing strategy is more effective in a marketplace with price-sensitive consumers.

Question 20

_____ strategy is when a company uses a low price to enter the market to encourage rapid acceptance of an innovation or to combat a competitive threat.

Accepted Answer

A) Yield management pricing 
B) Penetration pricing 
C) Prestige pricing 
D) Price lining 
A) Yield management pricing 
B) Penetration pricing 
C) Prestige pricing 
D) Price lining

_____ is charging different prices to maximize revenue for a set amount of capacity at any given time.

_____ is a competition-based method of pricing where tradition, a standardized channel of distribution, or other competitive factors dictate the price of a product.

Often, a firm that is selling not just a single product but a line of products may price them at a number of different specific pricing points, which is called odd-even pricing.

Odd-even pricing is most closely related to:

Direct labour and direct materials used in producing an item are examples of fixed costs.

H&G Co.Ltd.has used a high initial price for its newly launched cellphones.The company hopes to recover its research and development costs with this pricing.This is an example of a _____.

Nature's Taste, a manufacturer of floral jellies made from pansies, honeysuckle, and wisteria, prices its jellies by adding 30 percent to the cost of everything that goes into making the jellies including salaries, jars, sugar, and pectin.Which of the following pricing methods is being used here?

Which of the following is true of price skimming strategy?

Which of the following statements is true with respect to setting the final price?

Rather than billing clients by the hour, a group of lawyers and their clients agree on a fixed fee based on expected expenses plus a profit for the law firm.Which pricing method are they using?

"Get double Heped!! Buy two for the price of one!!!" is a promotion by Hep & Happy, a retailer of women's slim fit jeans.The retailer has, however, doubled the price charged for a pair of slim fit jeans.This is an example of double ticketing.

Value pricing is the:

Skimming pricing is a suitable demand-oriented approach when a firm is trying to attract price-sensitive customers.

Free-on-board (FOB) origin pricing is a method of pricing where the:

Walk Easy Inc., a manufacturer of heel replacement kits for men's shoes, incurs fixed costs of $6 million and unit variable cost of $5. Walk Easy Inc.fixes a sale target of 700,000 heel repair kits.What price must be charged to achieve a profit of $2.5 million?

Walk Easy Inc., a manufacturer of heel replacement kits for men's shoes, incurs fixed costs of $6 million and unit variable cost of $5. If Walk Easy Inc.charges $15 per kit, how many kits must be sold to break even?

The practice of exchanging goods and services for other goods and services rather than for money is called _____.

Which of the following statements about penetration pricing is true?

_____ strategy is when a company uses a low price to enter the market to encourage rapid acceptance of an innovation or to combat a competitive threat.

Marketing Fundamentals

The Marketing Environment

Consumer Behaviour

Market Research Metrics and Analytics

B2B Marketing

Segmentation Targeting and Positioning

Products and Brands

New Product Development

Marketing Channels and Supply Chain

Retailing and Wholesaling

Marketing Communications

Digital Marketing Communications

Customer Relationship Management

Marketing and Strategic Planning

Filters

Exam 9: Pricing

_____ is charging different prices to maximize revenue for a set amount of capacity at any given time.

_____ is a competition-based method of pricing where tradition, a standardized channel of distribution, or other competitive factors dictate the price of a product.

Often, a firm that is selling not just a single product but a line of products may price them at a number of different specific pricing points, which is called odd-even pricing.

Odd-even pricing is most closely related to:

Direct labour and direct materials used in producing an item are examples of fixed costs.

H&G Co.Ltd.has used a high initial price for its newly launched cellphones.The company hopes to recover its research and development costs with this pricing.This is an example of a _____.

Nature's Taste, a manufacturer of floral jellies made from pansies, honeysuckle, and wisteria, prices its jellies by adding 30 percent to the cost of everything that goes into making the jellies including salaries, jars, sugar, and pectin.Which of the following pricing methods is being used here?

Which of the following is true of price skimming strategy?

Which of the following statements is true with respect to setting the final price?

Rather than billing clients by the hour, a group of lawyers and their clients agree on a fixed fee based on expected expenses plus a profit for the law firm.Which pricing method are they using?

"Get double Heped!! Buy two for the price of one!!!" is a promotion by Hep & Happy, a retailer of women's slim fit jeans.The retailer has, however, doubled the price charged for a pair of slim fit jeans.This is an example of double ticketing.

Value pricing is the:

Skimming pricing is a suitable demand-oriented approach when a firm is trying to attract price-sensitive customers.

Free-on-board (FOB) origin pricing is a method of pricing where the:

Walk Easy Inc., a manufacturer of heel replacement kits for men's shoes, incurs fixed costs of $6 million and unit variable cost of $5. Walk Easy Inc.fixes a sale target of 700,000 heel repair kits.What price must be charged to achieve a profit of $2.5 million?

Walk Easy Inc., a manufacturer of heel replacement kits for men's shoes, incurs fixed costs of $6 million and unit variable cost of $5. If Walk Easy Inc.charges $15 per kit, how many kits must be sold to break even?

The practice of exchanging goods and services for other goods and services rather than for money is called _____.

Which of the following statements about penetration pricing is true?

_____ strategy is when a company uses a low price to enter the market to encourage rapid acceptance of an innovation or to combat a competitive threat.

Marketing Fundamentals

The Marketing Environment

Consumer Behaviour

Market Research Metrics and Analytics

B2B Marketing

Segmentation Targeting and Positioning

Products and Brands

New Product Development

Marketing Channels and Supply Chain

Retailing and Wholesaling

Marketing Communications

Digital Marketing Communications

Customer Relationship Management

Marketing and Strategic Planning

Filters