Question 1

Trade discounts are offered to resellers in the marketing channel on the basis of the marketing activities they are expected to perform in the future and

Accepted Answer

A)  the frequency of the order. 
B)  where they are in the channel. 
C)  when orders are placed during the year. 
D)  the length of the relationship with the manufacturer. 
E)  the size of the order. 
A)  the frequency of the order. 
B)  where they are in the channel. 
C)  when orders are placed during the year. 
D)  the length of the relationship with the manufacturer. 
E)  the size of the order.

Question 2

cost-oriented approaches,a price setter stresses the cost side of the pricing problem,not the __________ side.

Accepted Answer

A)  shareholder equity 
B)  income 
C)  service 
D)  supply 
E)  demand 
A)  shareholder equity 
B)  income 
C)  service 
D)  supply 
E)  demand

Question 3

Which of the following statements regarding cost-oriented approaches is most accurate?

Accepted Answer

A)  These methods focus on the demand side of the pricing problem. 
B)  These methods focus on production and marketing expenses. 
C)  Target return on investment is an example of a cost-oriented method. 
D)  Experience curve pricing is simple to use because costs predictably decrease by 25 percent with each doubling of production. 
E)  Cost-oriented approaches are subcategories of competition-oriented methods. 
A)  These methods focus on the demand side of the pricing problem. 
B)  These methods focus on production and marketing expenses. 
C)  Target return on investment is an example of a cost-oriented method. 
D)  Experience curve pricing is simple to use because costs predictably decrease by 25 percent with each doubling of production. 
E)  Cost-oriented approaches are subcategories of competition-oriented methods.

Question 4

Price fixing is illegal per se under the Sherman Act.What does "per se" mean?

Accepted Answer

A)  "according to" 
B)  "in lieu of" 
C)  "in regard to" 
D)  "in and of itself" 
E)  "without exception" 
A)  "according to" 
B)  "in lieu of" 
C)  "in regard to" 
D)  "in and of itself" 
E)  "without exception"

Question 5

Prestige pricing is considered to be a __________ approach to pricing.

Accepted Answer

A)  demand-oriented 
B)  cost-oriented 
C)  profit-oriented 
D)  competition-oriented 
E)  service-oriented 
A)  demand-oriented 
B)  cost-oriented 
C)  profit-oriented 
D)  competition-oriented 
E)  service-oriented

Question 6

Target return-on-investment (ROI)is frequently used by

Accepted Answer

A)  contractors. 
B)  public utilities. 
C)  business-to-business markets. 
D)  supermarkets. 
E)  small privately owned firms. 
A)  contractors. 
B)  public utilities. 
C)  business-to-business markets. 
D)  supermarkets. 
E)  small privately owned firms.

Question 7

pricing method is often used because of the difficulty in establishing a benchmark of sales or investment to show how much of a firm's effort is needed to achieve the target?

Accepted Answer

A)  target return-on-investment pricing 
B)  target return-on-sales pricing 
C)  standard markup pricing 
D)  target pricing 
E)  loss-leader pricing 
A)  target return-on-investment pricing 
B)  target return-on-sales pricing 
C)  standard markup pricing 
D)  target pricing 
E)  loss-leader pricing

Question 8

is the difference between a one-price policy and a flexible-price policy?

Accepted Answer

A one-price policy sets one price for al

Question 9

Red Bull price premium = [(37% ÷ 33%) - 1] = 0.1212 × 100 = 12.1%
Monster price premium = [(17% ÷ 18%) - 1] = -0.0556 × 100 = (5.6%)
Rockstar price premium = [(8% ÷ 9%) - 1] = -0.1111 × 100 = (11.1%)
Other brands price premium = [(38% ÷ 40%) - 1] = -0.0500 × 100 = (5.0%)
-the brand manager for Red Bull,what information does the Price Premium Marketing Dashboard above give you?

Accepted Answer

A)  Red Bull has a price premium relative to Monster. 
B)  Rockstar has a price premium relative to Monster. 
C)  Red Bull engaged in price discounting relative to both Monster and Rockstar from 2009 to 2010. 
D)  Rockstar sold more product than Monster in 2010. 
E)  In terms of dollar market share, Red Bull has a lower share than the "Other Brands" category. 
A)  Red Bull has a price premium relative to Monster. 
B)  Rockstar has a price premium relative to Monster. 
C)  Red Bull engaged in price discounting relative to both Monster and Rockstar from 2009 to 2010. 
D)  Rockstar sold more product than Monster in 2010. 
E)  In terms of dollar market share, Red Bull has a lower share than the "Other Brands" category.

Question 10

Rather than emphasize demand,cost,or profit factors,a price setter can stress what __________ is (are)doing.

Accepted Answer

A)  the service sector 
B)  "the market" or competitors 
C)  the global economy 
D)  suppliers 
E)  the financial markets 
A)  the service sector 
B)  "the market" or competitors 
C)  the global economy 
D)  suppliers 
E)  the financial markets

Question 11

manager of a small gasoline station observes that while gasoline sales have been steady,the service side of the business has fallen off,and mechanics are often idle.He decides to offer a promotion-a $20 off coupon for an oil change that is to be mailed to 800 households within a two-mile radius from the gas station.The cost of printing and mailing is $1,000.The normal cost of an oil change is $40.Materials and labor per oil change cost $15.How many additional maintenance service jobs must result for the promotion to break even?

Accepted Answer

A)  25 jobs 
B)  40 jobs 
C)  50 jobs 
D)  67 jobs 
E)  200 jobs 
A)  25 jobs 
B)  40 jobs 
C)  50 jobs 
D)  67 jobs 
E)  200 jobs

Question 12

__________ of a product is what customers are generally willing to pay.

Accepted Answer

A)  customary price 
B)  asking price 
C)  target price 
D)  discount price 
E)  market price 
A)  customary price 
B)  asking price 
C)  target price 
D)  discount price 
E)  market price

Question 13

price war refers to

Accepted Answer

A)  competition between sellers and resellers to maintain or attain the largest market share of potential customers. 
B)  conflicts between manufacturers and distributors regarding acceptable percentages they each may charge relative to one another. 
C)  when one channel member believes another channel member is engaged in pricing behavior that prevents it from achieving its profitability goals. 
D)  the successive price cutting by competitors to increase or maintain their unit sales or market share. 
E)  the practice of replacing promotional allowances with lower manufacturer list prices. 
A)  competition between sellers and resellers to maintain or attain the largest market share of potential customers. 
B)  conflicts between manufacturers and distributors regarding acceptable percentages they each may charge relative to one another. 
C)  when one channel member believes another channel member is engaged in pricing behavior that prevents it from achieving its profitability goals. 
D)  the successive price cutting by competitors to increase or maintain their unit sales or market share. 
E)  the practice of replacing promotional allowances with lower manufacturer list prices.

Question 14

one of its least favorite actions,Amazon.com was caught fiddling with its price tags.Avid DVD buyers,buying in quantity for resale,found that the online retailer was offering different customers different prices for the same DVD,and complained vociferously.Amazon was caught red-handed.Company officials admitted that the company was trying to see how much it could charge for an item before buyers balked.No matter what the reasoning behind it,Amazon.com was using

Accepted Answer

A)  horizontal price-fixing. 
B)  price discrimination. 
C)  resale price maintenance. 
D)  predatory pricing. 
E)  bait and switch pricing. 
A)  horizontal price-fixing. 
B)  price discrimination. 
C)  resale price maintenance. 
D)  predatory pricing. 
E)  bait and switch pricing.

Question 15

Quantity discounts refer to

Accepted Answer

A)  price reductions in unit costs for placing a larger order. 
B)  price reductions for placing long-term pre-scheduled orders. 
C)  price reductions to encourage retailers to stock inventory earlier than their normal demand would require. 
D)  reductions in unit costs for purchasing items that are nearing their expiration dates. 
E)  reductions in unit costs for taking merchandise that will soon be replaced by new and improved versions of the original product. 
A)  price reductions in unit costs for placing a larger order. 
B)  price reductions for placing long-term pre-scheduled orders. 
C)  price reductions to encourage retailers to stock inventory earlier than their normal demand would require. 
D)  reductions in unit costs for purchasing items that are nearing their expiration dates. 
E)  reductions in unit costs for taking merchandise that will soon be replaced by new and improved versions of the original product.

Question 16

Figure 14-2
-Figure 14-2 above represents the four approaches to selecting an appropriate price level."D" represents which approach?

Accepted Answer

A)  competition-oriented approach 
B)  demand-oriented approach 
C)  cost-oriented approach 
D)  profit-oriented approach 
E)  results-oriented approach 
A)  competition-oriented approach 
B)  demand-oriented approach 
C)  cost-oriented approach 
D)  profit-oriented approach 
E)  results-oriented approach

Question 17

Cost-plus pricing refers to

Accepted Answer

A)  summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price. 
B)  setting the price of a line of products at a number of different price points. 
C)  adding a fixed percentage to the cost of all items in a specific product class. 
D)  setting prices to achieve a profit that is a specified percentage of the sales volume. 
E)  increasing the price slightly to protect against undue profit losses from unforeseen environmental factors. 
A)  summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price. 
B)  setting the price of a line of products at a number of different price points. 
C)  adding a fixed percentage to the cost of all items in a specific product class. 
D)  setting prices to achieve a profit that is a specified percentage of the sales volume. 
E)  increasing the price slightly to protect against undue profit losses from unforeseen environmental factors.

Question 18

order to deliver a product that the average consumer can afford,Vizio

Accepted Answer

A)  handles product design and marketing in the United States and relies on contract manufacturers in Taiwan to build the product. 
B)  uses mass customization in Taiwan and then ships the HDTVs to the United States. 
C)  purchased a small company in China to distribute its products under the Vizio name. 
D)  purchased a small company in Japan to distribute its products under the Vizio name. 
E)  relies solely on recycled materials to build high quality, no-frills products. 
A)  handles product design and marketing in the United States and relies on contract manufacturers in Taiwan to build the product. 
B)  uses mass customization in Taiwan and then ships the HDTVs to the United States. 
C)  purchased a small company in China to distribute its products under the Vizio name. 
D)  purchased a small company in Japan to distribute its products under the Vizio name. 
E)  relies solely on recycled materials to build high quality, no-frills products.

Question 19

a seller represents a price as reduced,the item must have been offered in good faith at a higher price for a substantial previous period.Former price comparisons are deceptive if

Accepted Answer

A)  the high price tags were from a previous owner or retailer and were purchased that way from the reseller, even though that price didn't originate at the store. 
B)  the items for sale were part of a manufacturer's promotional allowance. 
C)  a high price was set for the purpose of establishing a reference for a price reduction. 
D)  the items for sale were available at the higher price for less than 30 days. 
E)  the items were purchased from the manufacturer at a higher price and the sale was part of a loss-leader promotion. 
A)  the high price tags were from a previous owner or retailer and were purchased that way from the reseller, even though that price didn't originate at the store. 
B)  the items for sale were part of a manufacturer's promotional allowance. 
C)  a high price was set for the purpose of establishing a reference for a price reduction. 
D)  the items for sale were available at the higher price for less than 30 days. 
E)  the items were purchased from the manufacturer at a higher price and the sale was part of a loss-leader promotion.

Question 20

Penetration pricing is considered to be a __________ approach to pricing.

Accepted Answer

A)  demand-oriented 
B)  cost-oriented 
C)  profit-oriented 
D)  competition-oriented 
E)  service-oriented 
A)  demand-oriented 
B)  cost-oriented 
C)  profit-oriented 
D)  competition-oriented 
E)  service-oriented

Trade discounts are offered to resellers in the marketing channel on the basis of the marketing activities they are expected to perform in the future and

cost-oriented approaches,a price setter stresses the cost side of the pricing problem,not the __________ side.

Which of the following statements regarding cost-oriented approaches is most accurate?

Price fixing is illegal per se under the Sherman Act.What does "per se" mean?

Prestige pricing is considered to be a __________ approach to pricing.

Target return-on-investment (ROI)is frequently used by

pricing method is often used because of the difficulty in establishing a benchmark of sales or investment to show how much of a firm's effort is needed to achieve the target?

is the difference between a one-price policy and a flexible-price policy?

Rather than emphasize demand,cost,or profit factors,a price setter can stress what __________ is (are)doing.

__________ of a product is what customers are generally willing to pay.

price war refers to

Quantity discounts refer to

Figure 14-2 -Figure 14-2 above represents the four approaches to selecting an appropriate price level."D" represents which approach?

Cost-plus pricing refers to

order to deliver a product that the average consumer can afford,Vizio

a seller represents a price as reduced,the item must have been offered in good faith at a higher price for a substantial previous period.Former price comparisons are deceptive if

Penetration pricing is considered to be a __________ approach to pricing.

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation,Targeting,and Positioning

Developing New Products and Services

Managing Successful Products,Services,and Brands

Services Marketing

Building the Price Foundation

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: The Strategic Marketing Process

Filters

Exam 14: Arriving at the Final Price

Trade discounts are offered to resellers in the marketing channel on the basis of the marketing activities they are expected to perform in the future and

cost-oriented approaches,a price setter stresses the cost side of the pricing problem,not the __________ side.

Which of the following statements regarding cost-oriented approaches is most accurate?

Price fixing is illegal per se under the Sherman Act.What does "per se" mean?

Prestige pricing is considered to be a __________ approach to pricing.

Target return-on-investment (ROI)is frequently used by

pricing method is often used because of the difficulty in establishing a benchmark of sales or investment to show how much of a firm's effort is needed to achieve the target?

is the difference between a one-price policy and a flexible-price policy?

Rather than emphasize demand,cost,or profit factors,a price setter can stress what __________ is (are)doing.

__________ of a product is what customers are generally willing to pay.

price war refers to

Quantity discounts refer to

Figure 14-2 -Figure 14-2 above represents the four approaches to selecting an appropriate price level."D" represents which approach?

Cost-plus pricing refers to

order to deliver a product that the average consumer can afford,Vizio

a seller represents a price as reduced,the item must have been offered in good faith at a higher price for a substantial previous period.Former price comparisons are deceptive if

Penetration pricing is considered to be a __________ approach to pricing.

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation,Targeting,and Positioning

Developing New Products and Services

Managing Successful Products,Services,and Brands

Services Marketing

Building the Price Foundation

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multi-Channel Marketing

Pulling It All Together: The Strategic Marketing Process

Filters