Question 1

Which of the following statements about geographical adjustments to price is most accurate?

Accepted Answer

A)  In FOB origin pricing, the seller selects the mode of transportation. 
B)  In FOB with freight-allowed pricing, the seller passes on all transportation costs to the buyer. 
C)  Multiple-zone pricing is sometimes referred to as "spider web" pricing. 
D)  Basing point pricing has been used in industries where freight expenses are a significant part of the total cost to the buyer and products are largely undifferentiated. 
E)  Geographical adjustments can be subject to government regulation if the firm cannot supply objective data (lists of mountains, rivers, weather conditions, etc.) explaining why those adjustments need to be made. 
A)  In FOB origin pricing, the seller selects the mode of transportation. 
B)  In FOB with freight-allowed pricing, the seller passes on all transportation costs to the buyer. 
C)  Multiple-zone pricing is sometimes referred to as "spider web" pricing. 
D)  Basing point pricing has been used in industries where freight expenses are a significant part of the total cost to the buyer and products are largely undifferentiated. 
E)  Geographical adjustments can be subject to government regulation if the firm cannot supply objective data (lists of mountains, rivers, weather conditions, etc.) explaining why those adjustments need to be made.

Question 2

Airlines,hotels,and car rental firms engage in _________ by varying prices based on time,day,week,or season to match supply and demand.

Accepted Answer

A)  skimming pricing 
B)  yield management pricing 
C)  bundle pricing 
D)  target pricing 
E)  prestige pricing 
A)  skimming pricing 
B)  yield management pricing 
C)  bundle pricing 
D)  target pricing 
E)  prestige pricing

Question 3

is loss-leader pricing and why do retailers use it?

Accepted Answer

For a special promotion,many retail stor

Question 4

Red Bull price premium = [(38% ÷ 33%) - 1] = 0.1515 × 100 = 15.2%
Monster price premium = [(18% ÷ 19%) - 1] = -0.0526 × 100 = (5.3%)
Rockstar price premium = [(7% ÷ 8%) - 1] = -0.1250 × 100 = (12.5%)
Other brands price premium = [(37% ÷ 40%) - 1] = -0.0750 × 100 = (7.5%)
-Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2009?

Accepted Answer

A)  12.1% 
B)  0% 
C)  -5.0% 
D)  -5.6% 
E)  -11.1% 
A)  12.1% 
B)  0% 
C)  -5.0% 
D)  -5.6% 
E)  -11.1%

Question 5

Experience curve 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

Figure 14-8
-Consider Figure 14-8 above."B" represents which of the following legislative acts?

Accepted Answer

A)  The Robinson-Patman Act 
B)  The Clayton Act 
C)  The Sherman Act 
D)  The Federal Trade Commission Act 
E)  The Consumer Goods Pricing Act 
A)  The Robinson-Patman Act 
B)  The Clayton Act 
C)  The Sherman Act 
D)  The Federal Trade Commission Act 
E)  The Consumer Goods Pricing Act

Question 7

Skimming pricing refers to

Accepted Answer

A)  setting the lowest initial price possible when introducing a new or innovative product in order to "skim" sales from competitors. 
B)  setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product. 
C)  setting a low initial price on a new product to appeal immediately to the mass market. 
D)  the practice of replacing promotional allowances with higher manufacturer list prices. 
E)  setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it. 
A)  setting the lowest initial price possible when introducing a new or innovative product in order to "skim" sales from competitors. 
B)  setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product. 
C)  setting a low initial price on a new product to appeal immediately to the mass market. 
D)  the practice of replacing promotional allowances with higher manufacturer list prices. 
E)  setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Question 8

penetration pricing policy is MOST LIKELY to be effective when: (1)a low initial price discourages competitors from entering the market; (2)unit production and marketing costs fall dramatically as production volume increases; and (3)__________.

Accepted Answer

A)  lowering the price has only a minor effect on increasing sales volume and reducing unit costs 
B)  when the high initial prices do not attract competitors 
C)  when customers interpret high prices as signifying high quality 
D)  many segments of the market are price sensitive 
E)  customers are willing to buy immediately at the high initial price 
A)  lowering the price has only a minor effect on increasing sales volume and reducing unit costs 
B)  when the high initial prices do not attract competitors 
C)  when customers interpret high prices as signifying high quality 
D)  many segments of the market are price sensitive 
E)  customers are willing to buy immediately at the high initial price

Question 9

Assume it costs Lady Marion Seafood,Inc.$30 to catch,process,freeze,package,and ship 5-pound packages of Alaskan salmon.The firm adds 60 percent to the cost of its salmon products and charges customers $48 for a postage-paid vacuum-sealed package.What type of pricing does Lady Marion Seafood use to arrive at its final price?

Accepted Answer

A)  target return-on-sales pricing 
B)  standard markdown pricing 
C)  standard markup pricing 
D)  target profit pricing 
E)  customary pricing 
A)  target return-on-sales pricing 
B)  standard markdown pricing 
C)  standard markup pricing 
D)  target profit pricing 
E)  customary pricing

Question 10

flexible-price policy refers to

Accepted Answer

A)  setting the price of a line of products at a number of different specific pricing points. 
B)  setting the prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item. 
C)  deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well. 
D)  setting different prices for products and services depending on individual buyers and purchase situations. 
E)  Adding a fixed percentage to the cost of all items in a specific product class. 
A)  setting the price of a line of products at a number of different specific pricing points. 
B)  setting the prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item. 
C)  deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well. 
D)  setting different prices for products and services depending on individual buyers and purchase situations. 
E)  Adding a fixed percentage to the cost of all items in a specific product class.

Question 11

Tostitos Photo
-decided to augment its traditional hardware retail distribution channel by also selling through mass merchandisers,such as Walmart and Target,and set prices for its products substantially below those for its traditional hardware outlets.As a result,many hardware stores abandoned Toro products in favor of other manufacturers.This is an example of a firm failing to consider __________ effects when setting its final list or quoted price.

Accepted Answer

A)  company 
B)  social responsibility 
C)  regulatory 
D)  competitive 
E)  customer 
A)  company 
B)  social responsibility 
C)  regulatory 
D)  competitive 
E)  customer

Question 12

Which one of the following statements regarding bundle pricing is most accurate?

Accepted Answer

A)  Bundle pricing is intended to benefit the consumer, not the seller. 
B)  Bundle pricing is really "bundle packaging" since the price charged is for two or more products that are shrink-wrapped together. 
C)  Bundle pricing is often associated with a skimming strategy. 
D)  Bundle pricing often provides a lower total cost to buyers and lower marketing costs to sellers. 
E)  Bundle pricing is based on the idea that consumers value the individual items more than they value the group contained in the package. 
A)  Bundle pricing is intended to benefit the consumer, not the seller. 
B)  Bundle pricing is really "bundle packaging" since the price charged is for two or more products that are shrink-wrapped together. 
C)  Bundle pricing is often associated with a skimming strategy. 
D)  Bundle pricing often provides a lower total cost to buyers and lower marketing costs to sellers. 
E)  Bundle pricing is based on the idea that consumers value the individual items more than they value the group contained in the package.

Question 13

Figure 14-1
-Figure 14-1 above represents the six steps in the price-setting process.Which letter represents the step where a firm would offer discounts?

Accepted Answer

A)  "E" 
B)  "D" 
C)  "F" 
D)  "C" 
E)  "B" 
A)  "E" 
B)  "D" 
C)  "F" 
D)  "C" 
E)  "B"

Question 14

Another name for flexible-price policy is __________.

Accepted Answer

A)  target pricing 
B)  fluid pricing 
C)  price lining 
D)  market-based pricing 
E)  dynamic pricing 
A)  target pricing 
B)  fluid pricing 
C)  price lining 
D)  market-based pricing 
E)  dynamic pricing

Question 15

Figure 14-6
-Figure 14-6 above shows the three types of special adjustments to list or quoted price."B" represents

Accepted Answer

A)  demand-oriented price adjustments. 
B)  geographical adjustments. 
C)  allowances. 
D)  discounts. 
E)  customary pricing adjustments. 
A)  demand-oriented price adjustments. 
B)  geographical adjustments. 
C)  allowances. 
D)  discounts. 
E)  customary pricing adjustments.

Question 16

Product-line pricing involves determining: (1)the lowest-priced product and price; (2)__________; and (3)the price differentials for all other products in the line.

Accepted Answer

A)  the single most popular item in the line 
B)  the least vulnerable product in the line 
C)  the highest-priced product and price 
D)  the most frequently sold product in the line 
E)  the most price insensitive product in the line 
A)  the single most popular item in the line 
B)  the least vulnerable product in the line 
C)  the highest-priced product and price 
D)  the most frequently sold product in the line 
E)  the most price insensitive product in the line

Question 17

unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?

Accepted Answer

A)  Using price differentials when price differences charged to different customers do not exceed the differences in the cost of manufacture, sale, or delivery resulting from different methods or quantities in which such goods are sold or delivered to buyers. 
B)  Using price differentials when price differences are given on the basis of other family businesses. 
C)  Using price differentials when charging different prices to different buyers for goods of like grade or quality. 
D)  Using price differentials when charging different prices on the basis of religious affiliation. 
E)  Using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications. 
A)  Using price differentials when price differences charged to different customers do not exceed the differences in the cost of manufacture, sale, or delivery resulting from different methods or quantities in which such goods are sold or delivered to buyers. 
B)  Using price differentials when price differences are given on the basis of other family businesses. 
C)  Using price differentials when charging different prices to different buyers for goods of like grade or quality. 
D)  Using price differentials when charging different prices on the basis of religious affiliation. 
E)  Using price differentials when charging the original price for refurbished goods that have been damaged or used and returned but repaired according to company specifications.

Question 18

is skimming pricing an effective strategy?

Accepted Answer

Skimming pricing is an effective strateg

Which of the following statements about geographical adjustments to price is most accurate?

Airlines,hotels,and car rental firms engage in _________ by varying prices based on time,day,week,or season to match supply and demand.

is loss-leader pricing and why do retailers use it?

Experience curve pricing is considered to be a __________ approach to pricing.

Figure 14-8 -Consider Figure 14-8 above."B" represents which of the following legislative acts?

Skimming pricing refers to

penetration pricing policy is MOST LIKELY to be effective when: (1)a low initial price discourages competitors from entering the market; (2)unit production and marketing costs fall dramatically as production volume increases; and (3)__________.

flexible-price policy refers to

Which one of the following statements regarding bundle pricing is most accurate?

Figure 14-1 -Figure 14-1 above represents the six steps in the price-setting process.Which letter represents the step where a firm would offer discounts?

Another name for flexible-price policy is __________.

Figure 14-6 -Figure 14-6 above shows the three types of special adjustments to list or quoted price."B" represents

Product-line pricing involves determining: (1)the lowest-priced product and price; (2)__________; and (3)the price differentials for all other products in the line.

unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?

is skimming pricing an effective strategy?

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

Which of the following statements about geographical adjustments to price is most accurate?

Airlines,hotels,and car rental firms engage in _________ by varying prices based on time,day,week,or season to match supply and demand.

is loss-leader pricing and why do retailers use it?

Experience curve pricing is considered to be a __________ approach to pricing.

Figure 14-8 -Consider Figure 14-8 above."B" represents which of the following legislative acts?

Skimming pricing refers to

penetration pricing policy is MOST LIKELY to be effective when: (1)a low initial price discourages competitors from entering the market; (2)unit production and marketing costs fall dramatically as production volume increases; and (3)__________.

flexible-price policy refers to

Which one of the following statements regarding bundle pricing is most accurate?

Figure 14-1 -Figure 14-1 above represents the six steps in the price-setting process.Which letter represents the step where a firm would offer discounts?

Another name for flexible-price policy is __________.

Figure 14-6 -Figure 14-6 above shows the three types of special adjustments to list or quoted price."B" represents

Product-line pricing involves determining: (1)the lowest-priced product and price; (2)__________; and (3)the price differentials for all other products in the line.

unique feature of the Robinson-Patman Act is that it allows for price differentials to different customers under several conditions.Which of the following practices would be permitted?

is skimming pricing an effective strategy?

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